Mysore/Mysuru: The Reserve Bank of India (RBI) has responded to a letter from R. Raghu Kautilya, President of the State BJP OBC Morcha, regarding alleged large-scale irregularities within the Mysuru Urban Development Authority (MUDA).

In his letter, Raghu urged the RBI to conduct a thorough legal scrutiny to determine if the sites in question were sanctioned in accordance with MUDA’s rules and regulations.

Raghu requested the RBI to review whether the sites or any properties purchased from such sites, were properly sanctioned when individuals approached banks for loans, offering these sites as collateral.

In light of the scam where MUDA sanctioned plots under questionable rules and regulations such as the allotment under the 50:50 ratio, Raghu appealed to the RBI to instruct banks and their branches to exercise caution while sanctioning loans.

He expressed concern that the irregularities in MUDA’s site sanctioning could lead to future cancellations of these sites. He urged the RBI to ensure that banks take necessary precautions to safeguard their financial stability and protect the public’s interests when dealing with such properties.

In response, the RBI has forwarded Raghu’s request to the Consumer Education and Protection Department for necessary action to ensure transparency and compliance with regulatory standards.