The Hindu : Karnataka News : Bhatkal bank chairman, directors accused of mismanagement

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Sunday, Jun 19, 2011
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Karnataka

Karnataka

Bhatkal bank chairman, directors accused of mismanagement

Correspondent

Former director to file a contempt case against the officials

Karwar: Mohammad Asif Ahmad Pirjade, former director of Bhatkal Urban Cooperative Bank Limited (BUCBL), has accused the chairman and directors of the bank of misdemeanour and mismanagement.

Addressing presspersons here on Saturday, Mr. Pirjade alleged that the Deputy Director of Co-operative Societies (DDCS), Karwar, failed to take any action against the BUCBL despite his repeated complaints.

He said the DDCS had also failed to follow the directives of the Karnataka High Court, which had asked it to take action against the bank authorities.

Contempt case

Mr. Pirjade said that he would file a contempt case against the officials and accused the bank directors of trying to cover up the issue.

He released the documents in the press meet and said the bank had suffered losses amounting to Rs. 10 crore.

He said 19 non-existent companies had been granted loans and alleged that the directives issued by the RBI were also violated.

Benami transactions

A number of benami transactions had been identified. In many cases, the credit sanctioned was not in conformity with the activities projected by the borrower, he alleged. Mr. Pirjade said that huge loans were granted to the kin of the president and the directors of the bank. These had become bad debts and were being treated as non-performing assets.

Mr Pirjade alleged that loans were also granted on the properties which had been declared by the advocate of bank that the assets were not free from encumbrances.

He said he had written to the RBI authorities about the alleged irregularities.

The RBI had directed the DDCS to conduct an inquiry but he always prolonged the inquiry or concealed the alleged irregularities of the bank, Mr Pirjade alleged.

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