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Minister shields bank scam accused NCP ex-MP

Minister shields bank scam accused NCP ex-MP

Author: Express News Services
Publication: The Indian Express
Date: August 19, 2006

Introduction: To keep Patil out of investigation, State Cooperatives Minister says he issued only recommendation, not an order

Accused in a multi-crore bank fraud seam, former Nashik MP and Nationalist Congress Party (NCP) leader Madhavrao Balwant Patil has been kept out of the probe on the "recommendation" of State Cooperative Minister Jaiprakash Dandegaonkar.

It was on the minister's instructions that Patil's name was dropped from the ongoing probe into allegations of fraud in the Nashik Credit and Capital Cooperative Bank seam after the latter claimed he was "too old and not directly involved".

Patil, the State Cooperative Bank chairman, along with 39 accused has been named in the FIR filed by a government auditor on August 6 at the Panchavati police station.

The FIR alleges fraud and misappropriation of funds by the bank, accusing directors, officials and "influential customers" of cheating.

Ironically, Dandegaokar's instructions to his department officials to drop charges against Patil has been meticulously recorded in the complaint lodged at the police station concerned.

In his FIR, government auditor Ramdas Kisan Aambekar has quoted from Nashik division's deputy registrar's letter, dated August 3, 2006.

Referring to instructions received from Dandegaonkar, the letter states: "In a memorandum to the State Cooperative Minister, Madhavrao Balwantrao Patil has claimed that he has fulfilled all bank requirements and has no dues. As per instructions received by the Nashik division no police action (criminal proceedings) is to be initiated against Madhavrao Balwantrao Patil."

Admitting that he had forwarded Patil's "request to be left out of the police probe", Dandegaonkar said: "A police case is filed primarily for recovery of money. Mr Patil has already paid up Rs 16 lakh. Stating that he would take responsibility for any further liability, he asked not to be involved in the police case. I only forwarded this request and recommended the same. It was not an order."

The six-page audit report, filed by auditor B S Pagare, looks into the accounts of the bank between 1992 and 2005. It states that the bank issued loans against shares of companies not registered with the Bombay Stock Exchange, permitted overdrafts from current accounts, gave loans against trading bills and book dates.

During the audit, it was discovered that loans worth Rs four lakh had been sanctioned without proper paperwork. Further, credit was given to companies with no balance in one of its accounts and as a result loans worth crores had not been recovered.

All accused were issued notices by the cooperative department in February, five months before the FIR was lodged.


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