The loan fraud case involving ₹39 crore at Kangra Central Cooperative Bank (KCCB) in Himachal Pradesh has taken a new turn, with investigations revealing that a special board approved a ₹20 crore loan for a defaulter. The accused, Yudh Chand Bains, had earlier defaulted on multiple loans, including ₹11 crore for a hotel project in Mandi. Despite his poor repayment history, the special board sanctioned a substantial loan for his new hotel project in Manali.
The approval was granted during the previous government’s tenure after it dissolved the previous board and constituted a new one. Bank officials had raised objections to the loan, but the board overruled their concerns and approved the project. Allegations of irregularities have now expanded to include the role of the board members who approved the loan.
The accused, a resident of Una district, is under vigilance scrutiny for allegedly colluding with bank officials and employees to secure fraudulent loans. An FIR has been registered against him for defrauding the bank. Vigilance authorities have seized the bank’s records and are questioning officials and employees as part of their investigation.
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Despite being on interim bail, Bains has been uncooperative in the investigation. He failed to appear for questioning at the vigilance office in Shimla, citing various excuses, including being out of town for important work. The vigilance department has announced its intention to recommend the cancellation of his bail to the High Court.
This scandal has raised serious questions about the governance and accountability of KCCB. With both the accused and the bank’s decision-makers under scrutiny, the investigation is expected to uncover more details about the alleged misuse of power and financial misconduct.