‘Banks gave clean loans to companies against rules’ | india | Hindustan Times
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‘Banks gave clean loans to companies against rules’

The banks which advanced loans without any security to the companies involved in 2G spectrum case are alleged to have favoured the companies by giving clean loans which are denied to common consumers and small scale industries.

india Updated: Feb 15, 2012 01:15 IST
HT Correspondent

The banks which advanced loans without any security to the companies involved in 2G spectrum case are alleged to have favoured the companies by giving clean loans which are denied to common consumers and small scale industries.

Massive demonstrations were staged by members of Jan Surajya Shakti Party (JSSP) in the main Shivaji chowk in Kolhapur city on Monday in protest against the concerned nationalised banks.

After the demonstrations, the JSSP’s Kolhapur unit’s chief Sanjay Patil told newspersons that according to the disclosure by the All India Bank Employees Association, Rs1 lakh crore has been given as loan to the companies involved in the spectrum case as ‘clean loan’ which is against the rules and ethics laid down by the RBI. He said the director boards of the concerned banks should be dissolved with action against them and new boards giving due representation to farm sector and small scale industrial sector should be urgently formed.

Patil said the RBI, which has been prompt in dissolving state co-operative and urban co-operative banks for comparatively less irregularities, should now resort to the same disciplinary action in the case of the erring banks.