Minister for Cooperation S.T. Somashekhar has said that stern action would be initiated against persons involved in irregular practices at Shivamogga District Cooperative Central (SDCC) Bank.
“There are allegations of issuance of loan by mortgaging fake gold at the bank. In addition to this, the State government has received complaints that the SDCC Bank had made preparations to issue loans to loss-making sugar factories without assessing their financial position. The State government has directed the bank not to issue loan to the sugar factories. The Joint Director of Department of Cooperation has been assigned with the responsibility of probing into these irregularities,” he told presspersons here on Monday.
Replying to a query he said that a decision on handing over the probe into the irregularities to the Central Bureau of Investigation (CBI) would be taken after looking into the report of the probe conducted by the Joint Director. Earlier in the day, a delegation of BJP leaders submitted a memorandum to Mr. Somashekhar requesting for a probe from the CBI into the financial transactions of SDCC Bank of past 15 years.
