Government cheque to BMIC promoter bounces

The Karnataka Government suffered a major embarrassment when a cheque issued by it to the Nandi Infrastructure Corridor Enteprise (NICE), promoters of Bangalore Mysore Infrastructure Corridor (BMIC), bounced.

The cheque worth Rs 500,000 was issued after the Supreme Court passed strictures against the Karnataka Government about two months ago for creating impediments to the BMIC project and directed payment of compensation for the same.

The cheque dated May 26, 2006, drawn on State Bank of Mysore, Treasury Branch, Bangalore, in favour of NICE, was bounced when it was presented for clearance earlier this week due to lack of funds. The cheque was returned from the bank with a remark “cheque not honoured due to insufficient funds”.

The cheque bounce episode has apparently left the Kumaraswamy regime red in the face. But, Government officials tried to pass the buck on the bank officials. “The bank has failed to reconcile the amount the in account and goofed up by sending the cheque back. We took the bank to task as soon as we came to know and requested NICE to present the cheque again”, Secretary to the Department of Public Works P B Mahishi told reporters.

Officials in the Finance Department of Karnataka Government said the cheque had been returned from the treasury due to a “technical snag” in the computer and not due to insufficient funds.

NICE Managing Director Ashok Kheny, who is engaged in a running feud with the H D Kumaraswamy regime over the project, said the Government had issued a cheque for Rs 500,000 as penalty imposed on it by the Supreme Court for blocking the BMIC project with malafide intentions. He said his lawyers were examining the legal aspects of the future course of action including pressing for criminal prosecution for a cheque bounce.

The cheque bounce case has also served as a cannon fodder for the Opposition Congress and All India Progressive Janata Dal (AIPJD), which have called for Kumaraswamy’s resignation as Chief Minister.