Diamond Bank scam accused moots refund plan

BJP leader and the main accused in the multi-crore Diamond Jubilee Co-operative Bank scam, C R Patil, has proposed a formula for repayment of his loan, which is over Rs 50 crore, before the Gujarat High Court on Friday.

The Court will take a decision on the proposal on Monday.

Appearing on C R Patil's behalf, advocate K S Nanavati stated that Patil would deposit a cheque of Rs 2.50 crore with the high court on Monday and another cheque of similar amount before October 31.

Patil would repay the remaining loan amount, in 12 installments of Rs 4 crore each, Nanavati stated.

Opposing the formula, public prosecutor Arun Oza contended that Patil had given an undertaking before the high court, assuring to repay the bank loan by selling his properties.

Oza argued that Patil had been unable to fulfill the undertaking, and hence he should be first asked to deposit the amount, before he is granted bail.

After hearing both the counsels, justice D H Waghela directed Patil to produce all advance cheques (as proposed by him) before him on Monday, when further hearing into the case would be held.

Justice Waghela also exempted Patil from surrendering before Surat Subjail authorities till Monday.

Talking to Business Standard, Patil's counsel K S Nanavati said, "On Friday we have only made an oral proposal regarding repayment of the bank loan amount. A written proposal will be presented before the high court on Monday."

Patil said, "I had taken loans from the bank and want to repay the same. There were some hitches in selling off my properties or else major portion of the loan amount would have been repaid by now. We have proposed a new formula to repay the money. We are sure that the high court will give one more chance to us."

Diamond Jubilee Co-operative Bank went bust in August 2002, mainly because of indiscriminate granting of loans to Patil and others by the bank. As the bank was unable to improve it's financial position, the Reserve Bank of India revoked it's licence in June earlier this year.

Diamond Bank has around 85,000 depositors with total deposits worth Rs 108 crore.