Gowda says increase in assets due to loan, rent against property

Mangalore, Oct 26:  

The Union Railway Minister, DV Sadananda Gowda, has said that the increase in his assets is due to the loans he had taken and the rental advances against that loan.

This follows ADR’s (Association of Democratic Reforms) analysis of the declaration made by the Minister to the Prime Minister’s Office (PMO).

Addressing presspersons in Mangalore on Sunday, he said as a responsible minister he wants to express his views on this with facts.

He said he had taken a rent securitisation loan of ₹8 crore from the Federal Bank branch in Mangalore, against the rent receivables of ₹2 crore from Ramaiah Foundation in Bangalore.

He said he had approached Federal Bank for a loan in September 2013, and the loan was sanctioned on November 20, 2013. He had started the discussion on the rental agreement then.

Since the elections were fast approaching, he could not complete the discussions on rental agreement then. The bank re-validated the sanctioned loan and disbursed it on May 23, 2014. The same day the property was registered in Gowda’s name and was mortgaged to Federal Bank. The plan was to credit the rent to the bank so that he can repay the loan amount.

He said that he did not know he will become the Minister at the time of registration.

Stating that he wants to remain transparent in his life, Gowda said he submitted the details to the PMO. He said that he did not do it outside the purview of law. He did not do it as a Minister, and he was not aware that he will become a Minister then, he said.