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This is an archive article published on June 12, 2003

BJP’s hall of scam: Gujarat minister in bank case

Co-operative bank scams are haunting the ruling Bharatiya Janata Party in Gujarat. A state minister is the latest to figure in a scandal.The...

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Co-operative bank scams are haunting the ruling Bharatiya Janata Party in Gujarat. A state minister is the latest to figure in a scandal.

The Dahod police on Tuesday registered a criminal complaint against 31 persons, including high-profile former BJP MP Gopalsinh Solanki and Minister of State for Cow Protection and Pilgrim Centre Development Prabhatsinh Chauhan, in connection with a Rs 128.86-crore scam in the Panchmahals District Co-operative Bank.

Solanki is a former chairman of the bank. This time around, BJP leaders have some company in the Congress — among those named are Opposition MLAs as well.

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The FIR filed by bank administrator J H Mehta alleged that the former bank chairman, several directors and bank officials had misappropriated a total of Rs 128.86 crore by issuing agricultural loans to farmers, some of them non-existent, by submitting false documents between January 2001 and May 12, 2003.

BJP leaders are playing the blame game. While Minister Chauhan said the scam could have occurred when former BJP MP Gopalsinh Solanki was the bank’s chairman, Gopalsinh blamed the BJP MP from Godhra, Bhupendrasinh Solanki, for dragging his name into the case.

The scam came up during the informal cabinet meeting today, with Chauhan claiming innocence and trying to explain his position to Chief Minister Narendra Modi. Chauhan is learnt to have told Modi that he was in no way involved in the scam and that his name had been dragged in by some ‘‘vested interests out to tarnish’’ his name. Sources said Modi did not react.

Later in the meeting, Chauhan turned the heat on Minister of State for Home Amit Shah. Chauhan said police should have informed him before including his name in the FIR by the bank administrator.

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Chauhan, who represents the Kalol constituency in the Panchmahals district, later told The Indian Express: ‘‘Though I was vice-chairman of the bank before the appointment of the administrator, I haven’t misappropriated a single rupee. I’m not a criminal. There’s no question of my resigning from the ministry, and nor has the chief minister asked me to do so.’’

He said he was not like ‘‘Dipak Sathi (BJP MP from Anand), who has defrauded the Charotar co-op bank of crores of rupees’’, and added he was willing to face any consequences.

Chauhan said the scam could have occurred during the tenure of former BJP MP Gopalsinh Solanki. ‘‘I repeatedly drew the attention of state BJP leaders and even the government to the functioning of the bank, but no one paid heed. The party had agreed to make me chairman of the bank under the rotation system, but Gopalsinh continued to head it.’’

Gopalsinh blamed his rival in the party and Godhra MP Bhupendrasinh Solanki for the complaint. ‘‘He is behind the police action. He wants to weaken his opponents ahead of the dairy cooperative elections on June 23,’’ the former MP said.

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Minister of State for Home Amit Shah said, ‘‘I am yet to know about the whole episode. I can’t comment on any police action against Chauhan or other local leaders involved in the bank scam, until I go through the contents of the FIR lodged against them.’’

State BJP president Rajendrasinh Solanki said, ‘‘The law will take its own course. The party is not going to take any action. No action can be taken on the basis of FIRs and party can’t take any stand on this. The treatment will be the same for all because they are all accused in co-operative bank scams.’’

The scam resulted in fund shortage at the bank, which led to panic withdrawals in the second week of May. Following the incident, the Reserve Bank of India (RBI)had suspended the bank and the government appointed an administrator.

Other politicians named in the FIR are former Congress MLAs Ditabhai Machar, Rajendrasinh Balwantsinh Patel, Mansinh Vallabhabahi Bhamat and Bachchubhai Nathabhai Kishori, sitting BJP MLAs Mahesh Bhuria from Limdi and Bhura Jetabhai Katara from Jhalod. All were on the bank’s board of directors.

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