(a) whether on the eve of Lok Sabha election, 1998, IDBi made any advances or supported
any amount to Jain TV;
(b) whether such decision was taken by the Board of IDBI;
(c) whether collateral securities were ensured by Jain TV; and
(d) if so, the estimated value of the collateral security vis-a-vis the amount given
by IDBI to Jain TV?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL) :
(a) to (d) Industrial Development Bank of India (IDBI) has reported a loan of Rs. 24 crores
was sanctioned to Jain Studios Ltd. in September 1999 for a project for setting up Gateway
Earth Station and providing home shopping on T.V. Channel, E-Commerce and internet services.
IDBI has further reported that against the sanctioned loan, the first part disbursement of
Rs. 6 crores was made on April 11, 2000.
The decision regarding financing a particular economic activity by granting loans to
individual entities is taken by Fls themselves based on their commercial judgement and
the lending policy laid down by their respective boards within the framework of prudential
regulations and exposure norms prescribed by RBI from time to time. However, in accordance
with the practices and usages customary amongst the banks and financial institution and in
conformity with the provisions of statutes governing the financial institutions and the
provisions of the Public Financial Institutions (Obligation as to Fidelity and Secrecy)
Act, 1983, the informa relating to individual units is not supposed to be divulged.