Opposition BJP attacked the Siddaramaih government in Karnataka for having failed to release funds towards the loan waiver component of farmers, reports Times of India.
BJP state president B S Yeddyurappa charged that the government tweaked the rules and regulations for providing legal backing for the state government owned Mysore Minerals Limited (MML) to remove its funds from nationalised banks and shift deposits to the Apex cooperative bank.
Earlier, the MML board of directors had said that keeping 71 per cent of its funds with the Apex banks was impossible as it would violate the 2012 department of public enterprises rules.
However, later the state government amended these giving MML and itself the legal backing to deposit Rs 1,400 crore in the Apex bank for a short period to build the capital reserve of the bank to starting waiving loans of farmers and hand out fresh loans.