Karnataka hands over probe into case against BJP MLA to CID

The case involves multiple transactions, prompting a recommendation for a higher-level probe, and the state government has now handed the case over to the CID. All documents related to the case have been submitted to CID officers

The state government has handed over the investigation into the case against Bharatiya Janata Party (BJP) MLA Ramesh Jarkiholi to the Criminal Investigation Department (CID).

The case centres around a complaint against the MLA and three others, accusing them of securing a multi-crore loan from state bank and failing to repay it. (ANI)

The case centres around a complaint filed against the MLA and others, accusing them of securing a multi-crore loan from the Karnataka State Cooperative Apex Bank for Saubhagya Lakshmi Sugars in Gokak taluk, Belagavi district, and failing to repay it.

“We have received documents related to the case and launched an investigation,” said CID director general MA Saleem. The investigation is set to unfold as authorities examine the intricacies of the financial dealings and alleged discrepancies surrounding the loan obtained by Saubhagya Lakshmi Sugars Limited, added the officer.

On January 7, the Karnataka State Cooperative Apex Bank manager Rajanna accused Jarkiholi of fraudulent intentions and failing to repay a substantial loan obtained from the bank. The first information report (FIR), filed in Vishveshwarapuram police station in Bengaluru, references financial dealings involving Saubhagyalakshmi Sugars Limited chairman Ramesh Jarkiholi, director Vasanth V Patil, and managing director Shankar A Pavade.

The factory is located on Gokak Falls Road, Belagavi district, and the loan was procured from the Karnataka State Cooperative Apex Bank’s head office for the establishment, expansion, and maintenance of the factory.

According to the complaint, the accused agreed to the bank’s conditions and obtained a loan of ₹232.88 crore in phases from December 7, 2013, to March 31, 2017. However, despite the agreed-upon terms, the accused failed to repay the outstanding present loan amount of ₹439.07 crore.

“Following the complaint, an FIR has been registered against Ramesh Jarakiholi, Vasanth V Patil, and Shankar Pavade under sections 420 (cheating), 406 (criminal breach of trust), 34 (collective criminal intent) of the Indian Penal Code (IPC),” said Vishveshwarapuram police inspector Dharmendra. The case involves multiple transactions, prompting a recommendation for a higher-level probe, and the state government has now handed the case over to the CID. All documents related to the case have been submitted to CID officers.

In addition to the allegations, the complaint states that Jarkiholi, who held key positions in Saubhagya Lakshmi Sugars Limited at the time of loan acquisition, relinquished his responsibilities after obtaining the loan. The FIR notes that he appointed unrelated individuals to manage the company, violating the terms set by the Karnataka State Cooperative Apex Bank.

The complaint adds that, as per the bank’s stipulations, the managing director and board of directors of the company should not be changed without the bank’s permission until the loan is repaid. The FIR alleges that this clause was breached by the accused, who replaced the directors without informing the bank.

Last week, the Gokak MLA approached the Karnataka high court seeking to quash the criminal case against him. Ramesh Jarkiholi in his plea claimed that he had resigned from the company but still, he was named in the FIR. He also noted that a case is pending before the National Company Law Tribunal (NCLT).