Karnataka Congress smells scam in Ramesh Jarkiholi-backed sugar factory

The Karnataka Congress has alleged that former minister Ramesh Jarkiholi was involved in a Rs 819-crore scam involving the co-operative sector.

Karnataka Pradesh Congress Committee spokesperson Lakshman alleged that Union Home Minister Amit Shah, former Maharastra chief minister Devendra Fadnavis and Karnataka Chief Minister Basavaraj Bommai were directly involved in the scam and sought a probe into the irregularities. The scam, according to Lakshman, involved Soubhagya Lakshmi Sugars Ltd which had raised Rs 578.39 cr in loan primarily from co-operative banks. Of the six board of directors of the company, four are related to Ramesh Jarkiholi, he claimed.

The apex bank has issued notice to the DCC banks to recover the loans in 2019. Though Apex Bank chairman and BJP legislator Belli Prakash wrote to Belagavi DC, referring to the notice, the district administration has not taken any action, according to Lakshman.