Interestingly, most of the accused beneficiaries have waived amounts which are many times more than the sanctioned amount. For instance former PWD minister Churchill Alemao was sanctioned a loan of Rs 2, 22,000 by the bank, while the waived amount is more than 10 times at Rs 22-odd lakh. He paid back only Rs 4, 44,000, to the bank, according to the complaint.
Noor Ahmed Sheikh, who filed the complaint, has alleged that Loan Waiver Scheme ‘Dam Duppat’ was illegally implemented by the bank from September 1, 2008 to March 3, 2011. A case under Sections 406, 408, 409, 120-BN r/0 34 of IPC has been registered against those named by Noor.
“The scheme was illegally implemented by all the concerned persons with common intention of cheating, corruption and causing loss to the bank. Though the matter was of immense importance pertaining to the approval and implementation of loan waiver scheme, still it was not included in the main agenda of the meeting held on September 1, 2008,” the complainant alleged.
Bank sources say that this scheme was applicable to those who had taken loans till the year 2000.
Sheikh alleged that former chairman Ramchandra Mule, granted the huge amount illegally to “156 borrowers among builders, businessmen and influential persons.” The former managing director (I/C), former general managers of Recovery and Legal sections are among others named in the complaint.
Crime Branch officials said they will summon all those named in the complaint for questioning. “If there is any evidence of guilt, arrests will be made. But at present inquiry is underway,” an official said.
The complainant has alleged that the bank without obtaining approval from the Central Registrar of Co-op Societies, RBI and also by violating bye laws no 42 illegally implemented the scheme.
The complainant has alleged that as per the resolution, only loan cases sanctioned prior to 2000 and which had deposited double the amount of principal loan were to be considered.
There is an allegation that many of the cases were sanctioned in the year 2000 and they did not deposit double the amount than the sanctioned amount, but were still considered for the loan waiver.
According to the resolution dated September 1, 2008, the Board decided to discuss and decide regarding the capitalization of interest on chronic loan accounts and resolved to apply the Dam Duppat theory to such chronic loan case whenever the loans have deposited double the amount of principal loan. It also resolved to apply the same procedure of applying interest as adopted in the cases of chronic loan cases which were earlier shifted to HO branch of bank from various branches on the basis of the Dam Duppat theory.
It may be recalled that NABARD had over the last five years, written strongly worded letters to the bank for its precarious financial position and for following One Time Settlement Scheme (OTS) that was not in accordance with RBI guidelines.
Elnish Golden Sands Resorts has a waived amount of Rs 79,22,262 which is three times that of the sanctioned loan amount of Rs 25 lakh. Nitex plastics has an sanctioned amount of Rs 20 lakh and a waived amount was more than double amounting to Rs 44,40,645, while Kailash Sea Foods has a sanctioned amount of Rs 5,00,000 and a waived amount which was four times more ~ Rs 23,32,566.
The complaint alleges that he was not eligible for the scheme as the loan amounts were not eligible along with 3 others including Naveen Metal, (waived amount) Rs 32 lakhs plus, Agusta Colaco and Shambhu Naik.