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From the past pages of dawn : 1967 : Fifty years ago : KMC gets dud cheques

Published Mar 19, 2017 07:21am

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KARACHI: Dud cheques for Rs44 lakh representing interest on fixed and current account deposits were presented to the Karachi Municipal Corporation by five co-operative banks recently, the Chairman told a grim house yesterday afternoon [March 18].

A scheduled bank not only refused to pay the interest but also declined the refund of the principal Rs72 lakh. To cap it all, its managing director requested the Corporation for more deposits, the Chairman added.

The Chairman was given a resume of the tragic tale of the Corporation’s total cash assets of Rs5,20,11,647 — including Rs89,11, 647 interest — blocked in a host of banks for years.

The co-operative banks which issued dud cheques and the scheduled bank which refused the refund of the compound were almost on the verge of liquidation, the Chairman added.

He said that the Government had been duly informed of the position. The West Pakistan Governor was also apprised of the situation during his last visit to Karachi. At the same time, a thorough investigation had been conducted and the final report would be sent to the Governor shortly.

In respect of the defaulting scheduled bank, the Chairman said the State Bank of Pakistan had been approached. The Governor of the Bank had asked for the comments of the bank concerned.

In the meantime, the Chairman said, efforts were being made to have a meeting with the State Bank Governor for a full-dress discussion on the issue and the measures to recover the amount.

Published in Dawn, March 19th, 2017

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