Money safe in Mandi Urban Cooperative Bank, says CM

Mandi, Oct 14 (UNI) Assuring the depositors of Mandi Urban Cooperative Bank that their money was safe, Himachal Pradesh Chief Minister Virbhadra Singh today said the state government will either restructure the bank or merger it with the HP State Cooperative Bank.

Addressing a press conference here, he warned of strict action against all people involved in financial irregularities and misappropriation of hundred thousand rupees from the bank.

''Not only will the state government recover the money siphoned off from the bank, but will also initiate criminal proceedings against people involved in the scam,'' he said here.

The Reserve Bank of India (RBI) had imposed a complete ban on withdrawal of money from the bank two years ago after it detected misappropriation of funds and other large scale financial bunglings.

Mr Singh said Rs six crore out of a total of Rs 12 crore misappropriated from the bank had been recovered and efforts were on to recover the remaining amount.

Replying to a question, he admitted that a few corrupt people elements had caused irreparable loss to the credibility of the bank.

The state government would soon decide whether to restructure the bank or merge it with the HP State Co-operative Bank, he said.

Brushing aside the BJP's allegation of deteriorating law and order situation in the state, he said during former Chief Minister Shanta Kumar's tenure, police resorted to firing 13 times in which 14 people were killed and 25 injured, while lathi charge had become a routine affair.

Mr. Singh criticised the BJP leaders for mixing religion with politics, saying the pujaris were increasing being used by it for its own vested interests and political gains.

I uphold Himachal's culture of gods and goddesses in high esteem, while decrying their use for political and vested interest,'' he said.

Mr Singh said the state was likely to suffer huge losses by not demanding its share in Bhakhra Dam, BSL and Pong Dams, which were built after rendering thousands homeless.

While all the other beneficiary states gained from these projects, Himachal and its people not only lost its precious lands but was never adequately compensated, he added.

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