ANANTAPUR: Alleged negligence on part of the officials in initiating legal action against wilful defaulters for repayment of the loans taken was learnt to have enabled some 325 borrowers of the District Cooperative Central Bank, Anantapur, to evade repayment and sale of the lands mortgaged to the bank in lieu of the loans.

Bank in dark

The inaction of the governing bodies and officials of the DCCB against the defaulters who had taken long term loans from the bank allowed them to dispose the lands mortgaged in lieu of the loans.

According to official sources, mortgaged lands worth about Rs. 5 crores were disposed by the borrowers without the knowledge of the bank, the sources stated. Asked whether there was any way to recover the loans now the sources said they was no option left for them.

Besides, there are some 175 influential wilful defaulters in the DCCB including a few former chairpersons, a few key leaders of the Congress, TDP and BJP.

Together, they owe about Rs. 70 crores, including principal amount and interest after reschedulement, to the bank since 1971.

Another Rs. 30 crores was blocked in short-term (crop) loans with the borrowers of the bank. Due to poor repayment of loans by the borrowers the bank has not been getting refinance from the National Bank for Agriculture and Rural Development for the last four years, denying enhanced finance to the farmers who repay the loans promptly.

Action contemplated

The DCCB is now considering serious action against State and Central Government employees, who had availed personal loans and had defaulted in repayment.

An amount of about Rs. 1.17 crores was outstanding from 326 employees for a period ranging up to 10 years, the officials stated. The total current repayment demand is Rs. 124 crores.

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