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

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

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It said there are some loans pending since 1977. The CAG report on Finance Accounts 2022-23 was tabled in the Assembly on Tuesday.

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"In respect of old loans amounting to ₹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.

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

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