Jadeja has allegedly defaulted in repaying a housing loan of Rs 2 lakh,he had taken from the Mahila Bank
A court in Jamnagar has issued a bailable warrant against Jamnagar Mayor Kananksinh Jadeja.
The BJP leader has allegedly been a defaulter of the Mahila Bank,which moved the court after an EMI cheque issued by Jadeja bounced.
The mayor has allegedly not cleared the housing loan debt even four years after receiving the banks notice over the incident of bouncing of his cheque.
The court issued the warrant after Jadeja failed to produce himself before it for a hearing on Saturday. The Jamnagar city police have been asked to serve the warrant by January 23.
Jadeja,who was elected mayor last year,has allegedly not responded to the notice issued on March 8,2004 asking him to pay the instalments.
According to sources,Jadeja had taken a housing loan of Rs 2 lakh from the Mahila Bank at an interest rate of 16 per cent on September 17,2001.
The bank has alleged that Jadeja was asked by the bank to clear the debt in 2004 after he was found to be very irregular in making EMI payments.
In response to the bank order,Jadeja issued a cheque of Rs 1.25 lakh in February 2004,which also bounced due to the inadequate balance in his account.
Despite bank notice to issue a fresh cheque within 15 days,Jadeja allegedly has not cleared the debt till date. Jadeja,however,said,I havent received any notice.
He said that he had taken the loan for a cottage,which was part of a holiday resort developed by the son of the then chairman of the Mahila Bank. The mayor said it was the chairmans son who facilitated the loan procedures.
Jadeja further said that the cottage designs were not as they were discussed,and hence he returned the property to the developer.