RBI penalty linked to past lapses, not current management: Balachandra Jarkiholi

Belagavi: Mentor of the Belagavi District Central Cooperative Bank (BDCC Bank), Balachandra Jarkiholi, clarified that the Rs 2 lakh penalty imposed by the Reserve Bank of India (RBI) on the bank was due to irregularities that occurred during the tenure of former chairman Ramesh Katti and not under the current or immediate past leadership.Addressing the media, Jarkiholi said the violations dated back to 2019, when loans were sanctioned to individuals who were serving as directors of the bank's board, which is against cooperative banking norms. He said a Rs 3 crore loan was granted to Panchanagouda Dyamanagoudar and Rs 60 lakh to Krishna Angolkar, both of whom were board members at the time.
He also pointed to another irregularity in which a Rs 97 crore loan was sanctioned to UK Ventures linked to Hukkeri MLA Nikhil Katti for a commercial mall project on Bauxite Road. According to Jarkiholi, the loan violated norms that require clear classification of commercial and residential property before sanctioning funds. He added that the RBI audit also pointed out lapses related to gold loans.Jarkiholi urged the public not to be misled by misinformation and stressed that the penalty was linked to past decisions. "People should react only after understanding the facts. The present leadership is not responsible for these lapses," he said.Responding to allegations regarding a Rs 120 crore loan to builder Jaysheel Shetty, Jarkiholi said the bank thoroughly verified documents related to 4 acres of land pledged for the loan. He said the land, originally residential, was legally converted for commercial use by the district administration and did not fall under any govt firing range, as claimed by opponents. He added that Shetty was prepared to face any legal scrutiny.Regarding the loan given to Soubhagyalaxmi Sugar Company, Jarkiholi said BDCC Bank sanctioned Rs 80 crore, while a similar amount was provided by the Kolhapur District Central Cooperative Bank. He said the company had pledged properties worth Rs 350 crore as security.Rejecting opposition claims that deposits were declining, Jarkiholi said about Rs 900 crore was withdrawn during the bank's election period, but nearly Rs 650 crore was redeposited. He maintained that deposits in the bank were steadily increasing.Jarkiholi also said that he, district minister Satish Jarkiholi, and BDCC chairman Annasaheb Jolle formed a panel that was later elected to lead the bank. He added that they will continue monitoring the institution to safeguard the trust placed in them by the public.He alleged that some individuals who controlled the bank for nearly two decades were now spreading misinformation after losing power.