The Bengaluru Police has initiated legal proceedings against former Karnataka minister and BJP MLA Ramesh Jarkiholi, alongside two others, in connection with an alleged failure to repay a loan amounting to Rs 439.07 crore borrowed from a cooperative bank for the establishment of a sugar factory.
Jarkiholi is facing accusations under Section 420 (cheating) of the Indian Penal Code (IPC). The complaint, filed by Rajanna Muthashetty, the Branch Manager of Karnataka State Cooperative Apex Bank's Chamrajpet branch, on Friday, asserts that Jarkiholi procured the loan in the name of Soubhagyalakshmi Sugars Limited, aimed at the establishment and expansion of a factory in Belagavi.
As per the complaint, the loan, totaling Rs 232.88 crore, was sanctioned between 2013 and 2017. The outstanding amount owed to the bank as of August 31, 2023, is reported to be Rs 439.07 crore, according to Rajanna's statement in the complaint.
The complaint further emphasizes a condition imposed during the loan sanction, wherein Soubhagyalakshmi Sugars Limited was allegedly prohibited from appointing a different President, Managing Director, and Director. However, the complaint alleges that the company violated this condition by altering the board of directors without notifying the bank, and appointing unrelated individuals to the board.
In the complaint, Rajanna accuses Jarkiholi and the two other office bearers of orchestrating these changes with the intent to deceive the bank.
