2 KUTCH BANKS IN REHAB SCAM
In an earthquake rehabilitation scam running into crores of rupees, the Kutch District Central Co-operative Bank, the Bhuj Commercial Co-operative Bank and government officials, have allegedly siphoned off government funds meant for revival of earthquake-affected cottage industries in Kutch district.

Following a PIL challenging the implementation of the scheme whereby personal loans of up to Rs 2 lakhs were to be disbursed through nationalised bank or a co-operative bank, the Gujarat high court has directed the commissioner of cottage industry to look into the irregularities and take action against the officials concerned within six months. Justice A.R. Dave has also directed the commissioner to look into a report submitted to him by director of Rural Technology Institute, Gandhinagar in pursuance of the scam in March 2003, lying unattended with him all these months.

The PIL filed by Prabhudan Gadhvi, vice president of the Lakhpat taluka panchayat, and two other residents of Kutch alleged that the implementing authority at taluka-level comprising additional collector, additional district development officer, taluka development officer, mamlatdar and representative of the bank or manager of the District Industry Centre as member secretary, sanctioned bogus applications and forward them to the DIC for implementation.

In certain instances, applicants who did not possess any unit prior to the quake, were granted loans while on May 31, 2001 more than 3,200 applications were sanctioned at one go without necessary approval, it alleged.

In Kapurasi, Koriyani and Moticher villages, where only three to four commercial units existed prior to the quake, loans were granted to 146 applicants.

The petition contended that a mamlatdar Lakhpat Jaydeepsinh Ansari and member secretary Mr Modia indulged in large-scale financial irregularities in getting bogus applicants get loans. It stated that in Kapurasi village, for instance, more than 160 people have been given loans for shops, the population of the village being hardly 1,400.

The nodal agencies, KDCC and BCCB disbursed loans without complying to norms. Even as loans were to be disbursed on 60-40 ratio -60 per cent was to be paid to the applicant as subsidy while the rest 40 per cent was given as loan - the banks retaining 50 per cent of the loan. While action has been initiated against office bearers of BCCB after the scam came to light, nothing has been done against KDCC, since its chairman is Narendrasinh Jadeja, the MLA of Abdasa, the PIL alleged.

Republished from The Asian Age