Daijiworld Media Network - Udupi (TP/JD)
Udupi, Nov 9: The much-contested co-operative bank loan issue has seen a significant de-escalation following the intervention of community leaders. Former MLA Raghupathi Bhat recently raised his voice in support of victims of a private bank, who allegedly had their documents misused, leading to unfair loan demands.
The bank management challenged Bhat to take an oath in front of Lord in Karamballi temple, alongside the victims he had been advocating for. The event was scheduled for Saturday, November 9. However, on Friday, community leaders and well-wishers from both parties intervened, advising that the matter be resolved through legal channels.
On Saturday, both sides gathered at the Karamballi temple, offering prayers, and as per the leaders' advice, the planned oath-taking was called off. Instead, a prayer service took place, with the bank management, staff, victims, Bhat, and other stakeholders participating.
Bhat's statement:
Speaking to the media after the prayer service, Raghupathi Bhat shared recent developments. He explained that Mahalakshmi Bank had issued a notice demanding collateral for loan repayments, which led to responses from key community leaders, including Pejawar and Palimaru Swamijis. These leaders, along with Mogaveera community figures G Shankar and Jaya C Kotian, facilitated discussions between the bank and the borrowers.
Bhat confirmed that borrowers were committed to repaying the principal along with interest and reaffirmed their desire to resolve the issue transparently and honestly. However, he expressed concern over ongoing misinformation on social media, which had caused personal distress for those involved. Bhat and the community leaders urged Mahalakshmi Bank to consider its social responsibility and resolve the matter without imposing additional burdens on the borrowers.
Bhat also pointed out that 36 individuals, who had not signed loan agreements, were being unfairly pressured to repay. He appealed for respect and understanding, stressing that the bank should engage with customers directly to discuss potential solutions rather than questioning their integrity. Community leaders, including the Swamijis and Mogaveera representatives, encouraged a peaceful and swift resolution.
Suvarna’s response:
In contrast, Mahalakshmi Bank president Yashpal Suvarna defended the bank’s operations and clarified that all of the bank's activities fall under the oversight of the Reserve Bank of India (RBI), which has certified the bank with an A-grade rating, affirming its sound financial practices. Suvarna expressed his readiness for any investigation, stressing that cooperative institutions like his are built on public trust, and he welcomed scrutiny as necessary to ensure financial discipline.
He remarked, “Anyone making accusations should first look at their own actions. Making baseless allegations without understanding the facts is an unjustifiable offense and an insult to the organization.” Suvarna pointed out that the person accusing the bank was, in fact, a former customer who had frequented the bank’s services. He also stated that anyone with concerns should formally address them in writing, as informal complaints could lead to the termination of their membership.
Suvarna further emphasized that the bank's operations are managed through RBI-approved software, and a formal response had already been provided regarding the allegations raised by Bhat. He argued that Bhat was not authorized to conduct an inquiry into the bank’s affairs and should have approached the proper authorities to verify the facts.
He added, “If these alleged victims are verified in court, will Raghupathi Bhat ensure they repay their loans? If it’s proven that they indeed took loans, the board of directors and I will bear the responsibility.”
Suvarna also responded to rumors suggesting that the victims attending Bhat's press conference were being coerced. He challenged Bhat to ensure that defaulters repay their loans if the allegations were proven in court. “I stand by my principles,” Suvarna said, “and I challenge Raghupathi Bhat to ensure defaulters repay their installments if proven.”
Suvarna dismissed claims made by Prasad Kanchan, saying that Kanchan’s accusations were immature and baseless. Suvarna mentioned that Kanchan’s father had served on the bank’s board until 2023 and that Kanchan had retracted his statements after learning the facts.
Legal Actions:
In closing, Suvarna confirmed that legal action had been initiated against those who made defamatory accusations. He noted that no genuine victims had come forward directly to the bank. “Now that the matter is in court, there will be no further discussions between defaulters and the bank,” Suvarna said. “This seems to be a calculated move. We operate commercially, not as a community-based entity. We follow formal banking procedures, not informal finance practices.”
Suvarna was joined at the press conference by vice president Vasudev Salian, Director Vinay Karkera, professional director Manjunath SK, AGM Sarika Kiran, and managing director Sharath Kumar Shetty.