Jogindra bank officials booked by State Vigilance

Sep 05, 2011 12:36 | Poltics

A case has been registered in State Vigilance and ACB Police Station Solan against the officers of Jogindra Central Co-operative Bank  under the prevention of Corruption Act for abuse of office on the basis of findings in an enquiry done by the Bureau. The enquiry disclosed that M/S Himachal Aluminum Company, Baddi had applied for sanction of credit facility of Rs.1.25 crore from Jogindra Central Cooperative Bank, Solan in November 1994. After considering viability to the project, the General Manager of the bank recommended credit facility of Rs.55 lacs on Dec 12, 1994.  However, the Executive Committee of the bank sanctioned credit facility of Rs. 90 lacs in favour of Himachal Aluminum Company on December 12, 1994 (Sunday). The operation of the loan account was allowed from December 28, 1994 without obtaining any collateral security. Subsequently, 2 properties were mortgaged by way of collateral security by the Company but they were not evaluated  by the bank and it was also not ascertained if these properties were free from encumbrances. The enquiry revealed that collateral furnished by the Company was insufficient for the credit sanctioned in its favour. The enquiry also revealed that payments due to Himachal Aluminum Company from its client were to be credited in the loan account of the Company maintained in the Jogindra Central Co-operative Bank but the bank officials allowed these amounts to be diverted to the Company. The Company defaulted on payments to the bank which resulted in huge loss to the bank. The enquiry revealed that the bank officers including the then Chairman of the Board of Directors of the bank 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. The case has been entrusted to the Special Investigating Unit of SV& ACB for investigation.