BDCC Bank Penalty Linked to Past Leadership, Says Mentor Balachandra Jarkiholi
Balachandra Jarkiholi, mentor of the Belagavi District Central Cooperative Bank (BDCC Bank), has 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 Media on Violations
Addressing the media, Jarkiholi stated that 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 specified that 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.
Additional Irregularities Cited
Jarkiholi also pointed to another irregularity involving a Rs 97 crore loan sanctioned to UK Ventures, linked to Hukkeri MLA Nikhil Katti, for a commercial mall project on Bauxite Road. According to him, this loan violated norms requiring clear classification of commercial and residential property before sanctioning funds. He added that the RBI audit highlighted lapses related to gold loans as well.
Urging Public to Understand Facts
Jarkiholi urged the public not to be misled by misinformation, emphasizing 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 explained that the bank thoroughly verified documents related to 4 acres of land pledged for the loan. He noted that the land, originally residential, was legally converted for commercial use by the district administration and did not fall under any government firing range, as claimed by opponents. He added that Shetty was prepared to face any legal scrutiny.
Details on Other Loans and Deposits
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 mentioned that the company had pledged properties worth Rs 350 crore as security. Rejecting opposition claims that deposits were declining, Jarkiholi stated that about Rs 900 crore was withdrawn during the bank's election period, but nearly Rs 650 crore was redeposited.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.
Leadership and Monitoring Efforts
Jarkiholi also revealed 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.
