The CBI has registered a case into alleged collusion of officials of the Bank of Baroda and Madhya Pradesh government in distributing credit worth Rs 5.30 crore to 139 farmers through Kisan credit cards in Neemuch in which only Rs 4 lakh could be recovered. The Neemuch district collector informed the bank on November 8 last year about sanctioning of loans on the basis of forged documents and sought details of it following which the bank started an investigation. The investigation by the bank showed that security records were forged, discrepancies in giving inspection reports and forgery in documents. The CBI has now acted on a complaint from the Bank of Baroda which has alleged that between 2013 and 2015, 139 farmers having 198 Baroda Kisan Credit Card accounts were disbursed loans worth 5.30 crore by the bank's Neemuch branch without following procedures and the RBI guidelines. It has registered case against nine persons including four officials of the bank, panel advocate, three private persons and unidentified officials of the state revenue department. "The present outstanding in these accounts is Rs 5.26 crore.
The procedure to be adopted towards grant of credit facilities in case of Baroda Kisan Credit Card was not adhered to...," the complaint said. The bank has alleged that its investigation has found that the incident took place "with the collusion of bank officials and outsiders which include revenue officials of the state government posted at Neemuch and nearby area, panel advocate and borrowers of the Baroda Kisan Credit Card".
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)