Both the banks have issued a statement that as the matter is currently sub-judice, they are unable to provide any specific comments at this time
FinTech BizNews Service
Mumbai, August 15, 2024: With reference to a circular issued by Govt. of Karnataka Secretariat on 12.08.2024 regarding closing the accounts of the state Government Department and other Institutions with SBI and PNB, both the banks have issued a statement today.
Alleging fund misuse, Government of Karnataka has ordered state departments to recover deposits from both SBI and PNB. As per Govt. of Karnataka’s version, there has been alleged misappropriation of funds by these public sector banks. The state govt order in with regard to alleged fraud involving Karnataka Industrial Area Development Board, which had deposited Rs25 Cr with PNB for 1 year. On expiry of the term, the bank released only Rs13 Cr and despite of a number of discussions, the remaining amount has not been released by the bank, as the govt order stated.
Punjab National Bank has today stated: “As the matter is currently Sub-Judice, it will not be prudent to make any specific comment. However, the Bank is committed for amicable resolution of the matter and is in discussion with Government of Karnataka.”
Karnataka Pollution Control Board Had deposited Rs10 Cr FD with SBI branch. Government of Karnataka has alleged that this amount was adjusted against a private company’s loans using forged documents. The govt has not received the due amount, its order stated.
According to a statement issued today by the State Bank of India (SBI) on the order issued by the Government of Karnataka dated 12.08.24, SBI in Dialogue with State Govt. Officials for amicable resolution to Karnataka State Government Order dated 12.08.24. As the matter is currently sub-judice, we are unable to provide any specific comments at this time. However, we remain in ongoing discussions with the Government of Karnataka to resolve the issue amicably."
