THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRIANANT.G.GEETE)
(a): As per the information provided by the Financial` Institutions (Fls), some companies
have diverted funds for the purposes other than those mentioned in the loan Agreement.
(b) & (c): In accordance with the practices and usages customary amongst banks and in
conformity with the provisions of statutes governing public sector banks and financial
institutions as also the provisions of Public Financial Institutions (Obligation As To
Fidelity and Secrecy) Act, 1983, further details relating to individual constituents cannot
be divulged.
(d) & (e): Fls/Banks are themselves competent to take action to protect their interests.
It has been reported that Institutions have filed recovery suits against the companies.
Institutions have issued guidelines for proper end-use of funds through a monitoring mechanism
which are updated from time to time, whenever considered necessary.