Southern States - Karnataka-Bangalore   

Action against Maha Rashtra Apex

By Our Staff Reporter

Bangalore July 16. The Cooperation Minister, H.Vishwanath, today told the Legislative Council that the Government could ask the police to book criminal cases on complaints by depositors against the Maha Rasthra Apex Corporation and its branches in the State seeking refund of their money. Replying to a debate on the Rs. 370-crore debacle, the minister told Basavaraj Horatti, V.S.Acharya, S.V.Manjunath, and Balakrishna Bhat that the Government would direct the police to initiate action on the complaints. He said he would write to the Union Finance Ministry to ask the Debt Recovery Tribunal to notify the case. Once this was done, the company would have to repay money to the depositors. But the minister reminded the members that the State Government did not have control over the company. All the records were with the Union Finance Ministry and the company was controlled by the Reserve Bank of India.

The Leader of the Opposition, D.H.Shankara Murthy, and Dr. Acharya urged the Government to initiate proceedings to seize the passport of Ramesh Pai and other directors of the company and arrest them on charges of cheating and betraying the confidence of the depositors. They quoted a High Court judgment in support of their argument.

Mr. Murthy and Dr. Acharya urged the Chief Minister, S.M.Krishna, to implement his proposal to introduce the Karnataka Protection of Interests of Depositors Bill.

Dr. Acharya suggested that the company still had Rs. 45 crore under the statutory liquidity ratio (SLR) and money in various subsidiary companies, which could be used for refunds.

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