Government of Sikkim Pays Rupees Five Crores & Five Lakhs to IDBI Bank.Gangtok:In 2003, the Central Bureau of Investigation, which started an inquiry into the financial irregularity at the now-closed Sikkim Vanaspati Limited,had cited that the case cannot be investigated any further, thanks to lapse of time and non-availability of documents.
SDF Government has finally put a lid on the industrial scam of Sikkim Vanaspati Limited by settling its debts to IDBI Bank,Gangtok by making full and final settlement by way of cash payment of Rs.5,05,00000/ (Rupees Five Crores and five lakhs) .In the Vanaspati scam, promoters had misappropriated around Rs 8 crore, leaving the government, its guarantor, to pay the debt.
Sikkim Vanaspati Ltd was started functioning during the Nar Bahadur Bhandari-led Sikkim Sangram Parishad regime, but now, the present Sikkim Democratic Front government has to bear the debt.
The unit reportedly availed of loans which was provided by financial institutions including, IDBI and Sikkim Industrial Development and Investment Corporation with the government as guarantor, a source said. But later, when the Sikkim Vanaspati Ltd failed to pay back the loan, the present government was held responsible.
