Madikeri: Amid reports that Kodagu DCC (District Central Co-operative) Bank head-quartered at Madikeri too is in the dock for extending loans to Harsha Sugars belonging to the brother of Congress leader and Belagavi MLA Lakshmi Hebbalkar, the Bank in a clarification on Friday denied giving loans to the Sugar Factory.
Addressing a press meet here yesterday, Kodagu DCC Bank President Kodandera Bond Ganapathy dismissed the allegations that the Bank has extended Rs.40 crore loans to Harsha Sugars owned by Lakshmi Hebbalkar’s brother in total violation of norms.
Pointing out that the Bank had received a oral request for extending loans to Harsha Sugars in 2014-15, Ganapathy said that, however, the request was rejected on the ground that the factory was located in another district and that the papers were improper. But later on, an amendment was made to the Bank’s bylaws under Section 25C of the Co-operation Act, which facilitated companies from other districts to avail loans from the Bank. Although Kodagu DCC Bank has not extended loans to companies from other districts on its own, the Bank, following recommendation by an Apex Bank constituted Committee, advanced Rs.8.68 crore loan to Sovereign Industries in Bagalkot district and Rs.9.85 crore to Islamic Education Trust, Kanachur, Dakshina Kannada district, in 2015. But, Sovereign Industries defaulted in repayment of Rs.1.56 crore and subsequently the Bank has started legal proceedings against the Bagalkot industry. As far as Kanachur Islamic Education Trust is concerned, the Trust is making monthly repayment of Rs.23 lakh, which also includes interest, Ganapathy said, while also clarifying that it is the responsibility of Apex Bank and the respective DCC Bank to recover loans along with interest.
Reiterating that Kodagu DCC Bank had not sanctioned any loan to outside companies even after the amendment to bylaws, he refuted the allegations that Kodagu DCC Bank had sanctioned Rs.40 crore loan to Belagavi-based Harsha Sugars.
Referring to a private TV channel’s claim that it possessed documents pertaining to extension of loan to Harsha Sugars, Ganapathy said that the documents claimed by the channel was a tampered loan document of Dakshina Kannada DCC Bank and he, being a Director of Apex Bank too, was aware of that having seen the tampered document.
Kodagu DCC Bank Vice-President Ketolira Harish Poovaiah said that following media reports that the Bank had extended loan to Harsha Sugars, the Bank customers were getting suspicious of the Bank. But the Bank customers need not worry about anything and the Bank’s Management would not give scope to anything that would threaten the interests of farmers and customers, he pointed out.
Bank Director Kannanda Sampath, General Manager M.K. Mohan, AGM Girish Kumar and Ganapathy were present at the present meet.
This post was published on October 12, 2019 6:37 pm