BANGALORE: The fallout of the Rs 159-crore Amanath Bank scam may soon hit Deputy Chairman of the Rajya Sabha and former Director of Amanath Bank, K Rahaman Khan, with the government considering granting sanction to prosecute Khan and other directors accused in the scam.
The administrator of Amanath bank and BMTC MD, Zameer Pasha, has sent a resolution (a copy of which is with Express) on behalf of Amanath Bank, seeking permission to prosecute Khan and all the other directors involved in the scam. This was revealed by highly placed sources inside the Co-operative Department.
The Reserve Bank of India (RBI) found Khan, Shareef and others guilty after an inquiry under section 68 of the Co-operative Societies Act. Once a request has been made for criminal prosecution under this section, the government is bound by the law to give permission.
On November 25, Express had reported that Rahaman Khan, Ziaullah Shareef of India Builders, and other directors of the Amanath Bank were found guilty by the Reserve Bank of India (RBI) of misappropriation and of unauthorised waiver of the principal amount and interest on loans by their kith and kin. The loss to the bank is around Rs 159 crores.
The bank has also accused Irfan Razack, MD of Prestige Group, of overcharging an amount of Rs 8 crore for constructing its central office at Shivajinagar.
The Bank, in 2003, lodged a complaint with the Commercial Street police station when the present directors against whom sanction is sought, were in charge of the bank.
However, members of the Amanath Bank Union said, “It was only to cover up their misdeeds that complaints were filed against three employees.” K Narayan Swamy, the Director of the Co-operative Department, when contacted by Express regarding action against the accused, refused to comment on the matter.
Despite several attempts Rahaman Khan could not be contacted. Calls made to his mobile phone went unanswered.
Delhi takes notice
Following the questions raised by MP Bhavana Guwali Patil on the Amanath Bank Scam, the Union Finance Ministry has written to the Chief Secretary to furnish comments on whether the state government was aware of the scam and if it has recommended the case to the Central Bureau of Investigation (CBI). Even after repeated efforts, Chief Secretary, S V Ranganath was unavailable for comment.