B.H. Narayana Gowda, vice-president of the Hassan District Congress Committee, has urged the State government to supersede the Hassan District Central Cooperative Bank, appoint an administrator, and order an inquiry into the affairs of the bank.
Mr. Narayana Gowda told presspersons here on Thursday that funds were misappropriated in the bank and that the State government has to take over the administration of the bank.
According to him, the bank disbursed crop loan totalling Rs. 160 crore in Channarayapatna taluk last fiscal because HDCC bank president C.N. Balakrishna contested the elections from the Shravanabelagola Assembly constituency.
“He prepared the ground for his contest by distributing the loan. Channarayapatna taluk has been given top priority while providing loans,” Mr. Narayana Gowda alleged.
He alleged that the bank had decided to demolish its 13-year-old office building in Holenarsipur and construct a new one only to make money by taking up the construction work.
“The old building is in good condition and there is no need for a new one,” he said.
“As per the norms, loan exceeding Rs. 35 lakh should not be given for construction of any structure.
“But, the bank has disbursed loans of up to Rs. 2 crore for construction of marriage halls, hospitals and colleges,” he said.
He urged the State government supersede the bank immediately and hold an inquiry into the affairs of the bank.