Panel pulls up MIDC for not monitoring loan

SHILLONG: The Assembly committee on public undertakings that examined the CAG report on the performance of Meghalaya Industrial Development Corporation (MIDC) pulled up the PSU for not monitoring sanctioning of loan to various entities.
The report was placed in the Assembly on Friday.
The Assembly panel also said responsibility should be fixed and the matter be investigated for not exercising due diligence while sanctioning loan to CMJ Breweries Private Limited and while making further disbursement.
The panel also examined loans taken by Byrnihat Hotel-cum-Shopping Complex and Destination Hotel Jaintia Hills.
The Assembly committee observed that it was unfortunate to note that both the borrowers, who availed loans from MIDC in 2009, were unable to repay the loan as expected for which the corporation has to bear the brunt.
“This would not have happened if due diligence was exercised at the time of sanctioning of loan,” the committee said.
The panel said in case the loanees are unable to repay the principal amount and interest as per agreement, appropriate legal action should be taken forthwith to compel them as well as their promoters and guarantors to do the needful.