BJP MLA, Congress MLA and JD(S) MLA among loan defaulters: Karnataka Minister

Cooperation Minister ST Somashekhar said the list of people defaulting on credit union loans includes MLAs Laxmi Hebbalkar and Bandeppa Kashampur, in addition to former minister Ramesh Jarkiholi.

Speaking to media in Belagavi on May 10, Mr Somashekhar said he had ordered the district’s credit unions and apex banks to recover the huge loans given to politically influential figures.

“Not only Ramesh Jarkiholi of BJP, Laxmi Hebbalkar of Congress, Bandeppa Kashampur of JD(S) still have loans to pay back. At least 24 sugar mill owners have taken out loans from credit unions. As well as confiscating the homes of people defaulting on a 2 lakh loan, steps have been taken by Apex Bank against large loan defaulters. Notifications have already been issued to everyone and instructions have been given for their recovery,” he said.

The minister said some of the debtors paid neither interest nor the principal, while others only pay the interest. Loans had been taken out from district central cooperative banks in Dakshina Kannada, Tumakuru and other districts.

When asked if the bigwigs would be protected, he said, “We will publicly release details of the outstanding loans.”

Sugar mills in Karnataka had defaulted on loans worth ₹6,500 crore. In Belagavi, the district’s central credit union had disbursed loans of ₹1,200 crore.

On Siddaramaiah’s corruption allegations, Mr Somashekhar wanted to know if no fraud had taken place during his tenure as Chief Minister.

Regarding the private vegetable market in Belagavi, he said that after changes in the APMC law, agricultural products could be sold anywhere. “APMCs should keep up with the competition,” he said.