Karnataka Cooperation Minister KN Rajanna acknowledged deviations from RBI guidelines in loan sanctions at Karnataka State Cooperative Apex Bank Ltd. In response to Kaduru Congress MLA Anand KS, Rajanna defended the deviations, stating they benefited MLAs, their sugar factories, and sugarcane farmers.
He refused to disclose loan details due to a 2015 RBI circular requiring beneficiary consent. Anand called for an investigation into an alleged Rs 2,000 crore issue, warning of a potential scam.
Rajanna claimed the loans supported struggling farmers and suggested Anand’s motives were politically driven.