Adarsh scam: bank that gave loans not aware of CRZ status | mumbai | Hindustan Times
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Adarsh scam: bank that gave loans not aware of CRZ status

mumbai Updated: Sep 12, 2012 00:56 IST

A senior officer of ICICI bank told the Adarsh commission on Tuesday that the bank was unaware that the society fell under the Coastal Regulation Zone (CRZ) area, or else they would not have advanced loans to the members without the CRZ clearance.

According to Pankaj Maduskar, chief manager of ICICI bank, the bank did not know about the status. “We did not independently verify whether the land in question falls under the CRZ or not. If the bank had known that the land in question was falling under CRZ, it would have asked for the necessary CRZ clearance from the society,” said Maduskar.

He added that the society had not brought the CRZ issue to the notice of the bank. “Without the CRZ clearance, the bank would not have granted loan to the society,” he added.

He said that the 24 members to whom the loans were advanced did not deliberate on the issue either. “The society had given the bank an undertaking stating that they have taken all the necessary permissions. The construction was happening at a good pace,” he said. The ICICI Nagpur branch had advanced loans to 24 members of which 20 had already repaid it.

The scam had rocked the state after it came to light that bureaucrats, politicians and defence personnel had colluded to get flats in the 31-storey tower in Colaba.