'Bank to get circular if debt cut from compensation'

Housing Minister V Somanna said that state chief secretary will soon issue circular to all the banks in the state asking them not to deduct loan dues from flood compensation credited to the accounts of affected beneficiaries.

Somanna told reporters here on Tuesday that during the visit to the flood-affected areas in Chikkodi taluk on Monday it came to the notice that the compensation amount credited to facilitate reconstruction of houses damaged during floods had been adjusted against the loan dues of the beneficiaries. It was immediately brought to the notice of Chief Minister B S Yediyurappa and he has assured that chief secretary will issue circular to all banks to refrain form such acts.

Deputy Commissioner and Zilla Panchayat Chief Executive Officers too have been asked to ensure that banks do not resort to such actions and compensation amount credited to the accounts of flood affected gets used for reconstruction of their houses, he added.

Officials have been asked to conduct ‘panchanama’ as many of the flood affected have lost all their documents during the nature's fury and extend benefits to them on humanitarian grounds. Copies of many of the documents were available with the District Administration and they should be made available to the affected, he said.

Sommanna added that government has released Rs 891 crore for Belagavi district for relief and compensation of which Rs 419 crore have been used and Rs 472 crore were in the account of the Deputy Commissioner. Works worth over Rs 100 crore were also under progress by Public Works Department, Department of Public Instruction and other departments. People whose houses were damaged were being given compensation and Rs 219 crore has been credited to their accounts.