Karnataka BJP MLA Ramesh Jarkiholi booked for defaulting on loan repayment

The complaint, filed by Karnataka State Cooperative Apex Bank manager Rajanna, accuses Jarkiholi of having fraudulent intentions and failing to repay a substantial loan obtained from the bank

Bengaluru: A first information report (FIR) has been registered against former minister and Gokak BJP MLA Ramesh Jarkiholi at Vishveshwarapuram police station in the city after a complaint was filed charging him with loan default, police said.

An FIR has been registered against former minister and Gokak BJP MLA Ramesh Jarkiholi at Vishveshwarapuram police station (FILE)

The complaint, filed by Karnataka State Cooperative Apex Bank manager Rajanna on Friday, accuses Jarkiholi of having fraudulent intentions and failing to repay a substantial loan obtained from the bank.

The FIR refers to financial dealings involving Saubagyalakshmi Sugars Limited chairman Ramesh Jarkiholi, director Vasanth V Patil, and managing director Shankar A Pavade. The factory is on Gokak Falls Road, Belagavi District. The loan, sought for the establishment, expansion, and maintenance of the factory, was procured from the Karnataka State Cooperative Apex Bank’s head office.

According to the complaint, the accused agreed to the conditions set by the bank 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 IPC Sections 420 (cheating), 406 (criminal breach of trust), 34 (collective criminal intent),” Vishveshwarapuram police inspector Dharmendra told HT. He said that the case is a multicrore issue, and the police department would hand over the case for CID probe after the government gives permission.

Adding to the allegations, the complaint said 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 states 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.

In light of these accusations, an FIR has been registered against Ramesh Jarkiholi, Vasant V Patil, and Shankar Pavade, police said. “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,” Dharmendra .

HT contacted Ramesh Jarkiholi for his comments on the case, but did not get one immediately.