Ramesh Jharkiholi owes financial institutions, government ₹819 crore, alleges Congress

Bengaluru/ Belagavi

 The Congress on Sunday alleged that the former Minister Ramesh Jharkiholi owes financial institutions and the government ₹819 crore and senior BJP leaders in State and Centre were hand-in-glove with him.

“Four members of Mr. Jharkiholi’s family are directors of the board in Sowbhagya Lakshmi Sugar Ltd. and a total of ₹578.39 crore has been raised as loan from various financial institutions, including district credit cooperative banks,” KPCC spokesperson Lakshman told presspersons here on Sunday. He alleged that the sugar mill also owes farmers dues to a tune of ₹50 crore and Income Tax dues to of ₹156 crore.

Mr. Lakshman said that BJP legislator and Apex Bank chairman Belli Prakash had issued a show-cause notice to Mr. Jharkiholi to seize his properties as part of loan recovery process in 2019. While the court stayed the recovery proceedings, it asked Mr. Jharkiholi to pay 50% of the loan amount within six months, and that it has not been paid, he alleged. Though the properties of Sowbhagya Lakshmi Sugars are valued around ₹900 crore, they have been undervalued to be around ₹65 crore, he alleged.

He alleged: “Though the company was declared bankrupt in 2019, sugarcane is still being crushed. The State government declared the loan as NPA in 2019. However, the profits of the company are being shared among directors, including Mr. Jharkiholi. What is the Enforcement Directorate doing about it?”

Efforts to reach out to Mr. Jharkiholi for his reaction did not yield results.