Karnataka govt not recovered old loans amounting to over Rs 10,000 cr: CAG

The Comptroller & Auditor General (CAG) has found that the Karnataka government has not recovered old loans amounting to over Rs 10,000 crore given to various entities, including a number of its own departments or undertakings.

It said there are some loans pending since 1977.

The CAG report on Finance Accounts 2022-23 was tabled in the Assembly on Tuesday.

“In respect of old loans amounting to Rs 10,389.78 crore involving eight departments (21 loanee entities), recoveries of principal have not been effected during the past several years, which includes loans pending since the year 1977,” the CAG said.

According to the CAG report, the 21 loanee entities have arrears of Rs 15,856 crore, which includes principal of Rs 9,380 crore.

The oldest arrears are from 1977, given to Bangalore Water Supply and Sewage Board (BWSSB) and Karnataka State Seeds Corporation Ltd.