Allegations of loan irregularities exceeding Rs 1,000 crore at the Karnataka State Cooperative Apex Bank have reached the Karnataka High Court, with a public interest litigation (PIL) seeking a comprehensive investigation and action against those responsible, reports the Organiser.
Filed by Pavan Kumar, the petition alleges that loans were sanctioned for non-agricultural purposes, fresh credit was extended to accounts already classified as non-performing assets (NPAs), and statutory banking norms were violated.
The petitioner has accused the Registrar of Cooperative Societies of failing to initiate proceedings despite audit observations and a complaint submitted in February 2026.
The PIL seeks inquiry, inspection and surcharge proceedings under the Karnataka Cooperative Societies Act, along with preservation of relevant loan records. It also raises concerns over lending involving private companies, educational trusts and sugar factories.
The allegations are yet to be adjudicated by the court.
