Vigilance books hotel owner, KCCB officials in illegal loan case

Vigilance and Anti-Corruption Bureau has registered a case at its police station in Una against Yudh Chand Bains, proprietor of M/s Himalaya Snow Village and M/s Hotel Lake Palace, and officials of the Kangra Central Cooperative Bank Ltd (KCCB).

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The FIR was registered yesterday against Yudh Chand Bains and officials of the KCCB under sections 420, 468, 471, 120-B IPC, 13 (1) and 13 (2) of the Prevention of Corruption Act, 2018.

The case has been registered after conclusion of an enquiry based on a complaint received by Vigilance from the Secretary (Cooperation) to the Himachal Government. The government has also given the permission under Section 17A of the Prevention of Corruption Act, 1988 to prosecute the officials of the KCCB.

In the inquiry by Secretary Cooperation, it was alleged that Bains took multiple loans from the KCCB in total disregard to the bank’s own lending policies as well as the guidelines of the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD). Total disbursement of Rs 20 crore was made directly to borrowers by the bank.

Bimal Gupta, IG Vigilance and Anti-Corruption Bureau, when contacted, said that the case has been registered and further investigation into the matter is under progress.

What had added more fire to the controversy is that the person, who got the loan, gave Rs 11 lakh for Vivekanand Trust of former Chief Minister Shanta Kumar as donation. Shanta Kumar, after coming to know of the controversy about the loan, returned back the cheque to loan beneficiary.

The Kangra Cooperative Bank had sanctioned a loan amount of Rs 65 crore to Bains for the hotel project in Manali. As per the Credit Monitoring Rules fixed for cooperative banks by NABARD, loans of more than Rs 40 lakh have to be approved by NABARD.