Belagavi DCCB warns of legal action against former MP Ramesh Katti and others for ‘false claims’

Belagavi DCCB threatens legal action against Ramesh Katti and others for spreading false claims about the bank's financial stability.

Anna Saheb Jolle, former MP and President of Belagavi District Central Co-operative Bank, has warned of legal action against former MP Ramesh Katti, Congress leader Mahantesh Kadadi, and some others for allegedly making false claims about the financial health of the bank.

“Some persons, including Mr. Katti, a former chairperson of the bank, and Dr. Kadadi are spreading false rumours about the bank claiming that the bank will close down soon. These are far from the truth. We have issued a legal notice to Dr. Kadadi. Similar action will follow against others if they continue to make defamatory statements against the bank or its management,” Mr. Jolle told reporters in Belagavi on February 9.

“Dr. Kadadi has falsely claimed that the bank had advanced a big loan to Ghataprabha-based contractor Jaysheel Shetty, without proper security or due diligence. This is false and baseless. The bank has extended a loan of ₹100 crore 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 government of Karnataka. Mr. Shetty has already paid ₹8 crore interest on the loan. He has assured repayment of the loan in March. If Dr Kadadi fails to apologise, we will file a a defamation case against him,” he said.

Mr. Jolle said that the bank had committed no wrong in advancing loans to the Soubhagyalaxmi Sugar Factory managed by members of the Jarkiholi family. “The bank has given a loan of ₹80 crore against property valued at ₹300 crore. This includes 432 acres of land,” he said.

Ramesh Katti, who is questioning every recent loan issued by the bank, should recall that the Katti family had availed ₹97 crore loan for constructing a mall on 7,270 sq. metres in Belagavi, and another ₹100 crore for Vishwaraj Sugars by mortgaging 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,” he said.

Mr. Jolle said that BDCC Bank had disbursed the highest agricultural loans among all districts in Karnataka, amounting to ₹3,710 crore, which was ₹300 crore higher than in 2025. “Our deposits have increased by ₹500 crore, and non-agricultural loans have also risen. As decided by the State and district technical committees, the upper limit of zero percent interest loans stands at ₹46,000,” he said in response to a query.