Have you heard the new controversy about the Karnataka government? Why have they cut connections with SBI & PNB? Are you Interested in information like this and searching for accurate information?
In this post, we are throwing some light on this topic and providing on-point information, only material content is provided. So, let’s hear some breaking news.
As per the circulation, SBI and PNB are not cooperating with the government in recovering 22 crore money that was stolen.
The Karnataka government has controlled all its boards, cooperations, public sectors, departments, and institutes to take out all the deposits and investments from the State Bank of India (SBI) and the Punjab National Bank (PNB).
This decision was accepted by Chief Minister Siddaramaiah, arising from accusations of embezzlement of funds involving these banks. According to a circular offer by PC Jaffer, Secretary of the Finance Department.
On 12th August, each government organization was asked to stop any further transactions with SBI and PNB and submit an obedience report by 20th September.
This involves forbidding new deposits or investments in these entities. The government’s action is a reply to both the particular cases where funds were reportedly appropriate and the banks failed to cooperate in reclaiming the lost amounts.
The first case is about a fixed deposit of 25 crores by the Karnataka Industrial Areas Development Board (KIADB) at the Rajajinagar branch of PNB in 2011, September.
While 13 crore was cashed, 12 crore was still unrecovered because of a claimed fraud involving bank officials. The circular said that letters and meetings with bank officials have not resulted, and the issue is now dragged into court.
So, the second case was about a 10 crore fixed deposit by the Karnataka State Pollution Control Board (KSPCB) at the former State Bank of Mysore, a part of SBI.
The deposit was claimed to be misused to resolve loans for a personal company using fake documents, and attempts to recover the amount were not successful.