JDS members protest in Karna assembly

JDS members today protested in the Karnataka Legislative Assembly opposing the ruling Congress demand to allow a debate over the alleged multi-crore gold loan scam in Shivmogga District Central Cooperative Bank.
They trooped into the well of the House, objecting to former primary and secondary education minister Kimmanne Ratnakar's demand to hand over the case to CBI.
Raising the issue, Ratnakar alleged that the bank employees in connivance with then bank chairman R M Manjunath Gowda had disbursed loans against fake gold, and in some cases, with no gold being mortgaged against the money advanced.
"This is a very big scam and hence must be allowed to be debated on the floor of the House and it should be given to CBI for investigation," he said.

Gowda had joined JDS in January this year.
Gowda was once a close aide of former Chief Minister B S Yeddyurappa and was Karnataka Janata Paksha (KJP) Vice President, which the Lingayat strong man had founded after he fell out with BJP.

Taking objection to the demand, JDS member H D Revanna said, "The issue should not be allowed to be discussed in the House since the matter is in the court."
"Also, why all this time, the Congress were silent over the issue and taken it up now?," he questioned.
Following a preliminary investigation, it was found that the bank had incurred a loss of Rs 62 crore for non-compliance with rules in issuing gold loans, he added.

The scam came to light early in July last year after the bank's general manager filed a police complaint, alleging huge financial misappropriation, Law and Parliamentary Minister Jayachandra said.
Subsequently,police seized several documents, including papers pertaining to illegal investment in various properties, he said.
Cooperation Minister had ordereda CID probe into the scam after the issue rocked the upper House on July 26, he added.
The police arrested 18 persons, including Gowda, he said.