Anwar Manippady Files Lokayukta Complaint Against Rahman Khan

Bangalore, Dec 28 (India Today): In a major setback for Union minister for minority affairs K Rahman Khan, the Karnataka State Minorities Commission (KSMC) on Friday lodged a complaint with the Lokayukta seeking a detailed probe into the Rs.300 crore scam, which allegedly took place at the Amanath Cooperative Bank during his tenure as the chairman between 1988 and 2002.

The complaint was lodged by KSMC chairman Anwar Manipaddy, along with the members of the commission. Incidentally, Anwar had criticized the induction of Rahman Khan into the Union cabinet in October.

Though the charges are old, the KSMC has filed a fresh complaint seeking a comprehensive probe. "We are aware that the charges are old; but we have gathered fresh evidence against him. Only the Lokayukta can ensure a fair probe into the scam. Therefore, we filed this complaint today with all the relevant documents and evidences," Anwar said.

The Lokayukta office premises witnessed ugly scenes when supporters of Rahman Khan tried to prevent the KSMC from filing the complaint. This led to an altercation between the two groups. After the KSMC chairman and members emerged out of the Lokayukta office, supporters of Rahman Khan tried to confront them. The police had to intervene to end the verbal duel between the two warring sides.

According to a FIR filed at the Commercial Street Police Station, Khan and 11 others allegedly misappropriated Rs.102 crore from the bank when he was at the helm of affairs of the financial institution. In addition, another Rs.200 crore was allegedly misappropriated. In 2009, the government-appointed administrator to the bank had published Khan's name as a "defaulter" in the balance sheet. Though the CID police probed the matter, according to the bank, he continued to remain a "defaulter", as he still owed dues.

"It is true that a few agencies have probed the matter. But appropriate action has not been taken by the authorities concerned after conducting the probe. Therefore, a fresh complaint with the Lokayukta was necessitated," Anwar contended.

Back then, the complaint was filed by the Bank CEO Shahara Banu in 2003, accusing Khan and several others of causing loss to the bank by way of sanctioning loans without cross-checking the credentials of the applications. In 2011, the then Karnataka's Minister for Cooperatives had alleged that Khan had sanctioned "benami loans" (pegged at Rs.102 crore) when he was the chairman of the bank between 1988 and 2002. Many of the recipients of such loans, according to the FIR, were Khan's relatives and friends.

After pressure mounted on the government to save the bank, which remained closed for a few months, the case was transferred to the CID. The CID conducted a detailed probe and filed a 'B' report against Khan in the case.

Disregard of the CID report, the bank initiated proceedings against Rahman Khan and other bigwigs to recover money from them in 2009. It became clear with the bank issuing four full-page advertisements of the balance sheet in leading newspapers on November 24 (Tuesday), 2009. The same was sent to Reserve Bank of India and the Registrar of Co-Operatives Society.