By Preity Zinta Breaks Silence on Allegations of Rs 18 Crore Loan Write-Off, Clarifies Full Repayment
Bollywood actress Preity Zinta has responded to allegations regarding an Rs 18 crore loan reportedly written off by the troubled New India Cooperative Bank Ltd. The controversy arose after a report by Moneylife exposed alleged financial mismanagement and corruption within the bank, leading to strict actions from the Reserve Bank of India (RBI).
The report claimed that the bank sanctioned corporate loans of up to Rs 25 crore without the knowledge of branch managers. Many of these loans reportedly became non-performing assets (NPAs) within a year due to alleged fund diversions. Among the high-profile cases mentioned was an alleged Rs 18 crore loan to Preity Zinta, which the report suggested was “written off” without following standard recovery procedures.
Responding to these claims, Preity Zinta issued a strong denial through her legal team. She clarified, “More than 12 years ago, I had an overdraft facility with the New India Cooperative Bank. More than 10 years ago, I repaid in full the entire dues in respect of this overdraft facility, and the account stands closed.”
Her response comes amid mounting concerns over the bank’s financial dealings, as the report revealed shocking details about the institution’s mismanagement. According to the findings, numerous loans were granted under questionable circumstances, leading to significant financial losses. Many senior employees of the bank reportedly raised red flags, but their concerns were either dismissed or ignored.
The financial irregularities at the New India Cooperative Bank have drawn attention not just because of the scale of the alleged corruption but also due to the involvement of high-profile individuals. The RBI’s intervention has been necessitated by claims that over 80 senior staff members were forced to resign in 2019 following the exposure of these financial discrepancies. Employees of the bank have since urged the RBI to conduct a forensic audit, dissolve the board of directors, and recover losses from the personal assets of those responsible.
The Moneylife report highlights the systematic failures in loan approvals and monitoring, which resulted in a substantial accumulation of bad loans. It also suggests that some of these loans were allegedly granted to politically connected individuals and influential personalities without proper due diligence. The issue has sparked debates on banking accountability and the need for stricter regulations in India’s financial sector.
Despite being named in the report, Preity Zinta has distanced herself from the controversy, asserting that she has had no outstanding dues with the bank for over a decade. Her legal team has emphasized that she repaid the overdraft facility in full and that her name has been unfairly linked to the controversy.
This case has once again brought attention to the fragility of cooperative banks in India. Unlike commercial banks, cooperative banks often operate under weaker regulatory frameworks, making them vulnerable to mismanagement and fraud. The New India Cooperative Bank case is just one among several incidents in recent years where cooperative banks have faced scrutiny due to poor financial governance and misallocation of funds.
The RBI’s involvement is expected to lead to further investigations and regulatory changes, particularly concerning how such large-scale loan write-offs occurred without adherence to standard procedures. Experts believe this case could prompt stricter monitoring and accountability measures to prevent similar financial scandals in the future.
On a personal note, Preity Zinta recently visited the Maha Kumbh in Prayagraj. She shared a picture on social media with a tilak on her forehead, captioning the post, “All roads lead to the Maha Kumbh. Satyam Shivam Sundaram.” Her spiritual visit comes amid the ongoing controversy, but she has remained firm in her stance that she has no connection to the alleged loan irregularities at the bank.
As the investigation unfolds, authorities are expected to scrutinize financial records and hold accountable those responsible for the alleged mismanagement. Meanwhile, Zinta’s statement serves as a strong rebuttal against attempts to link her name to the scandal, reinforcing that she has no financial liabilities related to the bank.
