CORPORATION BANK DENIES GIVING OVERDRAFT TO ROBERT VADRA

Date: 13 Oct 2012

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CORPORATION BANK DENIES GIVING OVERDRAFT TO ROBERT VADRA TNN | Oct 13, 2012, 12.12AM IST\\\\\\\\\\ NEW DELHI: Corporation Bank has insisted that it did not advance an overdraft to any of Robert Vadra's companies, adding a twist to the controversy swirling around the remarkable rise in the riches of Congress chief Sonia Gandhi's son-in-law. \\\\\\\\\\\\\\\\\\ "No such transaction with us as per our records so far," Ajai Kumar, CMD of Corporation Bank, told TOI on Friday, adding that he had sought full facts on the issue. \\\\\\\\\\\\\ In its annual report for 2007-08 financial year, Vadra's firm Sky Light Hospitality claimed an overdraft of Rs 7.94 crore from the bank. It was the first year of operation for the company, which had a paid-up capital of just Rs 1 lakh. By the end of the year, the company claimed it had Rs 7.95 crore worth of fixed asset. \\\\\\\\\\\\\\\\\ The directors of the company Vadra and his mother Maureen - said in their report to the shareholders, "You will be glad to know that your company has purchased land measuring 5 bighas & 12 biswas in Sohna tehsil of Haryana for Rs 7,94,00,000." The statement implied that it was the overdraft from Corporation Bank that paid for the land. \\\\\\\\\\\\\\ However, the denial by Corporation Bank has increased doubts about the authenticity of the claims made by the Vadras in the annual statement. "To my memory, then CMD had not approved any such loan. You may talk to the bank," said B Sambamurthy, the then CMD of Corporation Bank and currently director of the Institute for Development and Research in Banking Technology, Hyderabad. \\\\\\\\\\\\\\\ IAC member Manish Sisodia said Corporation Bank's statement clearly indicated that Vadra had filed a false balance sheet with the registrar of companies. "It could also mean that Vadra introduced black money through this entry," Sisodia said. \\\\\\\\\\\\ Even before Corporation Bank came out with the denial, the fact that a company with no other asset was extended such an overdraft by a public sector bank had baffled many. \\\\\\\\\\\ Sky Light Hospitality in its annual report had said, "The overdraft from the bank was book OD due to cheque issued before balance sheet date but not presented up to balance sheet date, which is cleared after balance sheet date." \\\\\\\\\\\ The annual report raises doubts also for its claim that the value of the land would shoot up as its use was to be shortly changed to non-agricultural purpose. "The land is in the process of conversion into non-agricultural usage. Your directors hope that the project will yield good profit to the company in future," the Vadras said. \\\\\\\\\\\\\ The assertion pointed to their optimism about a favourable decision from the Congress government in Haryana which the anti-corruption activists have accused of favouring DLF as part of a quid pro quo involving Vadra. =========================== 000000000