Bharatiya Janata Party State president Kummanam Rajasekharan has urged Reserve Bank of India Regional Director S.M.N.Swami to initiate an inquiry into the loans given by public sector banks to the resorts in Munnar constructed in violation of norms.
In a letter to Mr.Swami on Wednesday, Mr.Rajasekharan accused the banks of flouting banking norms by using public money to finance non-viable and highly risky and litigation-prone projects.
As many as 60 resorts had been constructed in and around Munnar town and were mostly functioning without licence.
Apart from encroachment, there was polluting of water bodies, leading to severe drinking water shortages and health issues.
Stop memos had been served on most of these resorts, still they were functioning illegally.
Despite being served stop memos and facing legal action for encroachment, the resorts had obtained loans.
