Karnataka govt's cheque issued to NICE bounces
Karnataka government on Wednesday suffered a major embarrassment when a cheque for Rs 5 lakh issued by it in favour of Nandi Infrastructure Corridor Enterprise (NICE) in compliance with a Supreme Court order awarding payment of fine, bounced.
By PTI |
BANGALORE: Karnataka government on Wednesday suffered a major embarrassment when a cheque for Rs 5 lakh issued by it in favour of Nandi Infrastructure Corridor Enterprise (NICE) in compliance with a Supreme Court order awarding payment of fine, bounced.
Managing Director of NICE, Ashok Kheny confirmed to media that the company's Bank, the Canara Bank, M G Road branch has returned the cheque with remarks "cheque not honoured due to insufficient funds."
However, Karnataka Government's Principal Secretary to the Finance Department N Gokulram maintained that there was no question of cheques bouncing as the government had sufficient funds in its treasury.
He said "Rs 5 lakh is an insignificant amount for the government. We are clearing cheques for higher amounts."
Referring to the ongoing moves by the government to take over NICE's project through a legislation, Kheny said "when a government can't ensure clearance of a cheque for Rs 5 lakh, how can they take over the Bangalore-Mysore Infrastructure Corridor (BMIC) project and implement it."
Kheny remained evasive on being asked whether NICE would present the cheque again, but said the matter has already been brought to the government's notice.
The company is exploring possibilities of initiating legal action against the government, Kheny said but declined to elaborate.
Meanwhile, one of the secretaries in the Chief Minister's secretariat, speaking on the condition of anonymity, said "the matter has been sorted out. The cheque will be cleared."
Managing Director of NICE, Ashok Kheny confirmed to media that the company's Bank, the Canara Bank, M G Road branch has returned the cheque with remarks "cheque not honoured due to insufficient funds."
However, Karnataka Government's Principal Secretary to the Finance Department N Gokulram maintained that there was no question of cheques bouncing as the government had sufficient funds in its treasury.
He said "Rs 5 lakh is an insignificant amount for the government. We are clearing cheques for higher amounts."
Referring to the ongoing moves by the government to take over NICE's project through a legislation, Kheny said "when a government can't ensure clearance of a cheque for Rs 5 lakh, how can they take over the Bangalore-Mysore Infrastructure Corridor (BMIC) project and implement it."
Kheny remained evasive on being asked whether NICE would present the cheque again, but said the matter has already been brought to the government's notice.
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The company is exploring possibilities of initiating legal action against the government, Kheny said but declined to elaborate.
Meanwhile, one of the secretaries in the Chief Minister's secretariat, speaking on the condition of anonymity, said "the matter has been sorted out. The cheque will be cleared."
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