BJP urges RBI to launch probe into PSB loans to Munnar resorts

BJP in Kerala today urged RBI to initiate an inquiry into the loans allegedly given by some public sector banks to some resorts in tourist town of Munnar, flouting all banking norms.
BJP state president Kummanam Rajasekharan also wanted stringent action against those involved in deploying public money to "finance non-viable and highly risky and litigation prone projects."
In a letter to RBI's Regional Director, a copy of which was released to the media here, the BJP leader also sought a comprehensive probe by CBI to unravel the "nexus" between the building lobby and bank authorities and prevent erosion of public money.

"There are about 60 resorts in and around Munnar town functioning with or without proper licenses from the authorities concerned allegedly with the active connivance of local political leaders and a passive bureaucracy," he said.
"The resorts have obtained loans from public sector banks despite the fact that they are ineligible due to the stop memos issued to them and litigation's pending due to the land encroachments," he added.