Took action against J&K Bank on RBI directions: Governor

Tribune News Service

Srinagar, June 12

Governor Satya Pal Malik on Wednesday said the state government’s action on removal of the J&K Bank chairman was taken on the directions of the Reserve Bank of India (RBI) and assured that “everything will come out” after the completion of the investigation into the matter.

Replying to questions, the Governor said there had been reports of corruption cases in the state and the concerned agency, Anti-Corruption Bureau, was investigating the complaints. He said two financial deals of Rs 150 crore each involving corrupt practices by highly influential people, including former ministers, were cancelled after getting a nod from Prime Minister Narendra Modi.

Giving details, Chief Secretary BVR Subrahmanyam clarified that the state government acted against the bank in response to the letters by the RBI, which forced the removal of chairman Parvez Ahmad. “We will have a search committee for the appointment of a good chairman and managing director of the bank”, the Chief Secretary said, adding that the bank was the “shining glory of the state with its long history”. He pointed out that under corporate social responsibility (CSR) many people had got backdoor appointments in the bank, saying that the bank was a custodian of the money of people.

“It is not a charitable trust. The bank had moved away from its basic principles”, the Chief Secretary said. Subrahmanyam disclosed that Rs 50 crore had been spent under the CSR on the development of a golf course in Srinagar.

The Chief Secretary said the bank would be protected and efforts were on to make it a renowned and international bank. He said things would be clear within next couple of months. He said the government- owned bank was run by a board of directors, and it had to adopt a procedure for the RTI.

‘Media projection of state negative’

Media channels in Delhi are projecting the Kashmir situation in a negative manner. I urge them to project it in a positive way that would help in promotion of tourism activities in the state. — Satya Pal Malik, Governor