Vigilance slap corruption case against bankers for causing loss to Jogindra Coop Bank

Shimla: State vigilance an anti-corruption bureau have registered a corruption case against a former chairman of Jogindra Central Coop Bank and some officers of the bank for abuse their official position in the year 1994.

An enquiry conducted by the bureau disclosed that a Baddi based company Himachal Aluminum Co applied for a credit facility of Rs 1.24 Cr from the Solan branch of the bank in November 1994.

Taking the viability of the project into consideration, the then general manager of the bank recommended a credit facility of Rs 55 Lakhs on December 12, 1994 but the executive committee of the bank sanctioned the limit of Rs 90 Lakh.

The company began operating the loan account from 28 December, 1994 without providing any collateral security. Though subsequently two properties were mortgaged by the company but they were not evaluated by the bank and it was not ascertained whether the properties were free from encumbrances.

The bureau enquiry revealed that the collaterals furnished by the company were insufficient for the credit sanctioned

Though the payments due to Himachal Aluminum Co from its client were to be credited in the loan account but the bank officials allowed these amounts to be diverted to the company.

Later the company defaulted on its payments to the bank which resulted in huge loss to the bank.
With the enquiry concluding that the bank officers including the then chairman of the Board of
Directors had abused their official position in the grant of credit to the company and its recovery thereafter, which benefited the Company and resulted in loss to the bank, a case has been registered at Solan.

“The case has been entrusted to the special investigating unit (SIU) for investigation, said Anurag Garg,” IG vigilance and anti-corruption bureau.

As Editor, Ravinder Makhaik has nurtured Hill Post for over a decade. A chequered path had him drift from managing family owned apple orchards, to turning a documentary filmmaker, to a journalist - with India’s leading television networks and newspapers, to boot strapping in founding Start-Ups. He lives in Shimla.

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