Diamond Bank 'delaying' recovery, says accused

C R Patil, the prime accused in the Rs 56 crore Diamond Jubilee Co-operative Bank scam, has charged the bank authorities with "intentionally delaying" registration of the memorandum of understanding he had signed with the bank.

The three-party memorandum, undertaking to repay the huge loan he has taken from the bank, will help the depositors get their monies back, he said.

The bank is closed since August 2002 following the scam. Patil, a prominent local BJP leader, is currently out on bail after he gave an undertaking in the Gujarat High Court that he will pay back the entire loan he had taken from the bank. Patil said his properties worth about Rs 100 crore would be sold for Rs 50 crore to repay the loan.

The memorandum was signed between Diamond Jubilee Co-operative Bank, Patil and the Ahmedabad-based Shree Saumya Constructions around a month back.

The bank is learnt to have sent the memorandum to the Reserve Bank of India (RBI) for approval.

Patil said, "I am trying to sell my properties, including 6 lakh sq mt land in Sachin and a farmhouse, which are mortgaged with Diamond Jubilee Co-operative Bank so that I can repay the loan amount."

Patil said, "Shree Saumya Constructions has already handed over a cheque for Rs 5 crore the bank. This can be deposited as soon as the memorandum is registered. The party has also assured to clear the remaining amount within five months. But the bank is delaying the registration of the memorandum."

He said, "The loan taken by me from the bank is completely secure. I have also given an undertaking to the Gujarat High Court that other properties owned by me would also be sold if I am unable to repay Rs 50 crore by selling these properties."

Patil said, "The monies of all the depositors and account holders of Diamond Jubilee Co-operative Bank are safe and secure. I have requested B C Patel, the bank administrator, and other authorities to register the memorandum at the earliest so that money can be recovered and the bank can be restarted at the earliest."

Administrator Patel could not be contacted for his comments.