VB seizes bad loan records of Kangra cooperative bank : The Tribune India

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VB seizes bad loan records of Kangra cooperative bank

DHARAMSALA: The Vigilance Bureau (VB) has confiscated the records of bad loans from the Kangra Central Cooperative Bank (KCCB).

VB seizes bad loan records of Kangra cooperative bank


Lalit Mohan

Tribune News Service

Dharamsala, November 16

The Vigilance Bureau (VB) has confiscated the records of bad loans from the Kangra Central Cooperative Bank (KCCB). The inquiry into the bad loans given by the bank during the stint of previous Congress government has been initiated on the basis of a chargesheet prepared by the BJP before the elections.

In the chargesheet, the BJP had alleged that the bank management, headed by the previous chairman Jagdish Sapiya, had extended loans in violation of norms that had turned into non-performing assets (NPAs). Sources said the vigilance confiscated records of loans extended to UR Sinter, Yudh Chand Bains and Crest Steel in Una district and RL Belvedere in Palampur.

SP, Vigilance, Kangra, S Arul Kumar, admitted that the inquiry was going on.

The sources said the Vigilance was probing conspiracy angle in sanctioning of loans. It was also looking into the role of chartered accountants and architects in preparing forged documents for sanctioning of loans.

Sources said the loan worth Rs 62.72 crore to a steel unit at Amb in Una had turned NPA. Similarly, the Palampur branch had taken over a bad loan given by a nationalised bank to a hotel owner which was now an NPA.

The loan to a Palampur hotel had been a bone of contention between the former board of directors of the bank. Director Keshav Korla had alleged that it would cause a loss to the bank. Former MD PC Akela, in his report submitted to Chief Minister Jai Ram Thakur a few months ago, had also raised questions over the Rs 1.30 crore cash credit limit (CCL) extended to Chunni Lal Chauhan, brother of Anand Chauhan, an LIC agent, who is an accused in corruption cases registered by the CBI against former CM Virbhadra Singh. The loan was also an NPA. Chauhan owes Rs 1.29 crore to the bank.

The MD in his report had said Credit Monitoring Arrangements (CMA) norms of the RBI were violated while granting the loan. The MD had stated that as per norms, the loan limit to individuals by cooperative banks with ‘A’ rating would be Rs 60 lakh, Rs 40 lakh for banks having ‘B’ rating and Rs 25 lakh for banks having ‘C’ rating. In the case, the CCL limit of Rs 1.30 crore to Anand Chauhan was a violation of the norms.

The MD has also raised a question mark over Rs 62.72-crore loan and CCL to Crest Steels, Una, that has been an NPA since November 30, 2016, Rs 18.74 crore and RS Belvedre, Palampur, that also an NPA account.

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