The Andhra Pradesh government would review the decisions of various state corporations depositing huge amounts in small private banks to prevent misappropriation of public money.
Intervening during question hour, chief minister N Chandrababu Naidu assured the house that action would be taken against those who patronise small and private banks, without any justification, for depositing huge government funds.
The chief minister gave this assurance when women and child welfare minister, P Aruna, reportedly failed to field pointed questions from the opposition as to why the Womens Finance Corporation deposited Rs 1.8 crore in a private bank and did not file a petition to attach property when the bank failed to repay the deposit amount on maturity.
The official, who took the decision to deposit Rs 1.8 crore in a private cooperative bank, is now with the Centre and we have recommended action against him, the chief minister said Aruna said that the state Womens Cooperative Finance Corporation had invested Rs 1.8 crore as fixed deposit in the Aryan Cooperative Urban Bank during 1993-94 and the bank failed to return the amount on maturity in 1997.
Only Rs 17 lakh was paid as interest, she claimed.
