Arunachal to hand over Apex Bank loan scam to CBI

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Itanagar, Oct 1 (UNI) The state government has decided to hand over the multi-crore loan scandal of Arunachal Pradesh Cooperative Apex Bank Limited to Central Bureau of Investigation (CBI).

The state cabinet in its recent sitting has approved handing over the scam to the CBI, Chief Minister Dorjee Khandu disclosed this during the bank's 20th annual general body meeting here yesterday, official sources said here today.

Mr Khandu while appealing to the defaulters of the bank to either repay in a week or face action further directed the bank management to go for a massive recovery drive and put the guilty, including corrupt officials, behind bars.

"There should be no mercy for loanees and officials who were responsible for the mismanagement of the bank at the cost of the poor depositors numbering over a lakh", Mr Khandu said adding, politicians as the chairman of the bank and its officials, were equally responsible for the bank going red with around Rs 204 crore outstanding loans in 2004.

The bank, which had faced a steep liquidity crunch in 2005, leading to closure of its 32 branches, has recovered over 75 crore during 2004-2008, but the outstanding loans still stand at Rs 129 crore, according to official records.

The chief minister assured to deposite non-treasury funds of the government to increase the liquid cash position and directed the normal operation of the lone state-owned bank be resumed at the earliest.

" Allow loan to the government employees following all formalities to be deductible from salary to ensure that the bank never meets the same fate again", he said.

Revival of the sick bank was one of the priorities as disclosed by Mr Khandu immediately after swearing-in as the chief minister of the state last year.

Accordingly, the chief minister pursued the Centre to take decision of granting an amount of Rs 225 crore as advance from the National Hydro Electric Power Corporation (NHPC), which would be adjusted against the free share of power after commissioning of the projects being executed by the power giant in the state.

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