Gokak MLA and BJP leader Ramesh Jarkiholi is facing charges of defrauding the Karnataka State Cooperative Apex Bank in connection with a loan, with remaining dues amounting to ₹439.7 crore.
The First Information Report (FIR) was filed at the Vishveshwara Puram police station recently, following a complaint lodged by Rajanna, the General Manager (Banking) of the Karnataka State Cooperative Apex Bank.
The lawsuit revolves around a series of business loans acquired for Mr. Jarkiholi’s Gokak-based sugar factory, Soubhagya Lakshmi Sugars Limited, spanning from 2013 to 2017. During this period, Mr. Jarkiholi was affiliated with the Congress. He later switched to the BJP in 2019, leading to an ongoing dispute with Deputy Chief Minister D.K. Shivakumar. Mr. Jarkiholi has accused Mr. Shivakumar of targeting him, even in the “sex CD scandal,” where he received clearance from the police.
Mr. Rajanna, in his police complaint, stated that Mr. Jarkiholi, serving as the Chairman and Managing Director of Soubhagya Lakshmi Sugars Limited in Gokak, along with directors Vasanth V. Patil and Shankar A. Powade, submitted applications to the bank. They secured business loans totaling ₹232.88 crore between July 12, 2013, and August 31, 2017, from the Karnataka State Cooperative Apex Bank and other banks within its network, including district cooperative banks in Vijayapura, Tumakuru, Dakshina Kannada, and Uttara Kannada.
The person filing the complaint asserted that the loans remained unpaid, and as of August 31, 2023, the cumulative outstanding amount reached ₹439.7 crore.
According to Mr. Rajanna, the bank had explicitly set conditions that alterations to the company’s board required prior approval from the banks before loan clearance. Nonetheless, the complaint alleges that, as part of a plot to defraud the bank and evade loan repayment, the three accused relinquished their roles in the company. Subsequently, they appointed unrelated individuals as directors without informing the bank.
