Co-op Bank Prez Rajanna probed in DK Shivakumar case

Karnataka State Apex Cooperative Bank President K N Rajanna (DH Photo)

The Enforcement Directorate (ED) on Wednesday questioned Karnataka State Apex Cooperative Bank President K N Rajanna in connection with the investigations into the money laundering case against senior Congress leader DK Shivakumar.

Shivakumar's brother D K Suresh, a Lok Sabha MP, and a transporter Sunil Kumar Sharma also appeared before the ED.
Officials said Rajanna, a former MLA, was questioned about the loan sanctioned to the sugar factory owned by Belagavi Rural MLA Lakshmi Hebbalkar, who is a close associate of Shivakumar. Hebbalkar was also questioned by ED earlier as also Shivakumar's daughter Aisshwarya.
After coming out of the ED office, Rajanna said he has been asked to appear before the ED on October 16.
"They enquired about the loan the apex bank and its affiliates gave to the sugar factory owned by Lakshmi Hebbalkar. The ED has asked me for some more documents and I will give it on October 16," Rajanna told reporters.
He said a loan of Rs 215 crore has been given to the sugar factory. "We have taken all necessary security. While giving out the loan, we have not violated any rules," he said.
Officials said they recorded Rajanna's statement under the Prevention of Money Laundering Act (PMLA). Investigators will be probing his links with Shivakumar.
Shivakumar was arrested by the ED on September 3 and is presently in judicial custody and lodged in Tihar Jail. While his bail plea was rejected by an ED court earlier, his judicial custody will be ending on October 15.

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