Listen to the article
In an escalating financial dispute, Anna Saheb Jolle, the president of Belagavi District Central Co-operative Bank (BDCC Bank) and former MP, has threatened legal action against several prominent figures for allegedly spreading false information about the institution’s financial stability.
During a press conference in Belagavi on February 9, Jolle specifically named former MP Ramesh Katti and Congress leader Mahantesh Kadadi among those he claims have been making defamatory statements suggesting the bank is on the verge of collapse.
“Some persons, including Mr. Katti, a former chairperson of the bank, and Dr. Kadadi are spreading false rumors about the bank claiming that the bank will close down soon. These are far from the truth,” Jolle stated, confirming that a legal notice has already been issued to Kadadi.
The controversy centers around several high-profile loans, including a significant credit facility extended to Ghataprabha-based contractor Jaysheel Shetty. Jolle vehemently denied Kadadi’s allegations that the loan was granted without proper security or due diligence.
“The bank has extended a loan of ₹100 crore to Mr. Shetty against hypothecation of four acres of commercial land in a prime location in Belagavi, and another ₹700 crore against bills payable to him by the Minor and Major Irrigation Department of the Karnataka government,” Jolle clarified. He added that Shetty has already paid ₹8 crore in interest and has committed to repaying the loan by March.
The BDCC Bank president also defended the institution’s lending practices regarding a ₹80 crore loan to the Soubhagyalaxmi Sugar Factory, which is managed by members of the politically influential Jarkiholi family. According to Jolle, the loan is secured by property valued at ₹300 crore, including 432 acres of land.
In a pointed response to his critic, Jolle highlighted that Katti’s own family had previously received substantial loans from the bank, including ₹97 crore for a mall construction project on 7,270 square meters in Belagavi and ₹100 crore for Vishwaraj Sugars secured by just 13.19 acres of land.
“Now, should we term those transactions wrong? No. We will not. We sanction loans when borrowers have sufficient property for hypothecation. We do not give loans to defaulters,” Jolle asserted.
The controversy comes at a time when the BDCC Bank claims to be performing strongly in the agricultural sector. Jolle reported that the bank has disbursed ₹3,710 crore in agricultural loans, the highest among all districts in Karnataka and ₹300 crore more than the previous year. He also noted an increase in deposits by ₹500 crore and growth in non-agricultural loans.
Addressing concerns about liquidity, Jolle explained the seasonal nature of banking in agricultural regions: “During the Kharif season, depositors and farmers withdraw their deposits to meet their agricultural needs. They put them back after the agricultural produce is sold. Now, the bank is on the path of progress.”
The dispute highlights the often-contentious intersection of finance, agriculture, and politics in Karnataka’s cooperative banking sector, where prominent local leaders frequently hold influential positions in financial institutions that serve as crucial lifelines for farming communities.
During the press conference, Jolle also announced a new employee welfare initiative, revealing plans to provide insurance coverage for all 2,081 bank employees. The scheme will offer ₹1 lakh coverage for a family of four, with ₹5 lakh compensation for natural deaths and ₹15 lakh for accidental deaths. The premium costs will be shared between the bank (58%), employees (21%), and affiliated societies (21%).
Bank Vice-president Raju Kage and several directors, including members of the Jarkiholi family, attended the media briefing, presenting a united front amid the controversy.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
6 Comments
It’s concerning to see former officials making public claims about a bank’s stability. The bank should provide detailed financial information to dispel any rumors and demonstrate its soundness.
Loans extended to contractors are always a sensitive topic. The bank should ensure proper due diligence and collateral to protect its financial position. Transparency and good governance will be key here.
This seems like a complex financial dispute between the bank and former politicians. It’s important that the bank addresses any concerns about its financial stability transparently and within the law.
This appears to be a complex situation involving political rivalries and financial accusations. The bank should tread carefully and focus on facts to protect its reputation and stability.
Disputes over loans and financial claims can often become heated. I hope the bank and former officials can find a constructive way to address the concerns and reach a resolution.
Allegations of false claims and defamation can get messy. I hope the parties involved can resolve this issue amicably and provide clarity on the bank’s standing to reassure the public.