Home » Karnataka » Bjp Mla Ramesh Jarkiholi Booked For Violating Loan Norms Of Bank

BJP MLA Ramesh Jarkiholi, booked for ‘cheating’, ‘criminal breach of trust’ for bank loan default

Upon completion of the loan document verification process, the police plan to issue notices to the accused parties, including Jarkiholi.

ByBellie Thomas

Published Jan 08, 2024 | 6:49 PM ⚊UpdatedJan 08, 2024 | 6:49 PM

BJP MLA and former minister Ramesh Jarkiholi. (X)

BJP MLA Ramesh Jarkiholi finds himself embroiled in financial drama as the Vishweshwarapuram police in Bengaluru are actively perusing documents related to an unpaid loan of ₹232.88 crore, with the current outstanding standing at a staggering ₹439.07 crore — almost double the original figure.

The complaint was filed by Rajanna, General Manager of the Karnataka State Co-operative Apex Bank’s Pampa Mahakavi Road branch.

Police, which booked the BJP MLA, are working to unravel the intricacies surrounding the accusations leveled against Jarkiholi, who was Managing Director of Soubhagya Laxmi Sugars Limited when the loan was sanctioned, as well two others who were then directors, Vasant V Patil and Shankar A Pawade.

All three stand accused of deceit and criminal breach of trust.

The Vishweshwarapuram police have already initiated legal proceedings against the BJP MLA and former minister, along with the aforementioned directors. Their alleged transgressions involve violating the terms of the loans acquired from the Karnataka State Cooperative Apex Bank and other affiliated banks.

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Ramesh Jarkiholi’s transgressions

As outlined in the FIR, Rajanna has alleged that Jarkiholi, along with then directors Patil and Pawade, secured a loan amounting to ₹232.88 crore between 12 July, 2013, and 31 March, 2017, for the expansion and establishment of Soubhagya Laxmi Sugars Limited.

As of 31 August, 2023, the accused still maintained a balance of ₹439.07 crore, Rajanna noted in his complaint.

Furthermore, there was a stipulation that the company could not change its managing director or directors until the loan was fully repaid. Despite this contractual obligation, the accused surreptitiously appointed unknown individuals to these positions, an act described in the complaint as “with an intention to cheat”.

Consequently, the Vishveshwarapuram police filed charges against the trio under Sections 406 (criminal breach of trust) and 420 (cheating), in addition to Section 34 of the Indian Penal Code (IPC).

Upon completion of the loan document verification process — based on Rajanna’s submissions — the police plan to issue notices to the accused parties, including Jarkiholi.

This action will be taken following the acquisition of necessary permissions from UT Khader, Speaker of the Karnataka Legislative Assembly, as revealed by police sources to South First.