State to recommend CBI probe into irregularities in Gururaghavendra co-op and Vashishta Souhardha banks

BENGALURU

Co-operation Minister S.T. Somashekhar on Tuesday announced that the State government would recommend to the Centre to order a CBI probe into irregularities in the functioning of Gururaghavendra Co-Operative Bank and Vashishta Souhardha Bank. 

He made the announcement during a meeting in Bengaluru to examine the issues related to irregularities in the banks and their revival. The Minister said the government was ready to refer similar irregularities, if any in other banks, also to the CBI. He asked the officials concerned to prepare a proposal on this. 

The Minister said he would bring the proposal on seeking CBI probe into irregularities in the banks before the meeting of the State Cabinet soon. 

He expressing concern over loans disbursed by these banks yet to be recovered though three years had lapsed since a probe had been taken up into the irregularities. The depositors of these banks were levelling allegations against the Government, and hence, the episode would be referred to the CBI to protect the interests of depositors, he said. 

The officials who were presently conducting a probe were efficient and there was no question of protecting anyone involved in irregularities, he said. However, the episode was being handed over to the CBI as a probe by a high-level body like CBI would instill confidence among investors, he said. 

The Minister’s remarks were endorsed by MLAs Ravi Subramanya, Sowmya Reddy and MLC U.B. Venkatesh, who were also present at the meeting, stated an official communique.