Odisha FM writes to Sitharaman on release of funds of Puri Jagannath temple from Yes Bank

Amid Yes Bank crisis, Odisha's Finance Minister Niranjan Pujari on March 7 urged central government to issue necessary instructions to Reserve Bank of India (RBI) to allow release of deposits relating to Shree Jagannath Temple. According to a letter accessed by Republic, Niranjan Pujari informed Union Finance Minister Nirmala Sitharaman about various funds related to historic temple that have been currently deposited with Yes Bank in shape of TDRs. Pujari also urged finace minister to take necessary action in order to safeguard interest of millions of devotees of Lord Jagannath. 

Read: 'Govt Taking Strict Action, SBI Moving In That Direction': RS Prasad On Yes Bank Crisis

letter stated, "Foundation Fund, Corpus Fund, Temple Fund are being mand by Managing Committee, Shree Jagannath Temple Administration (SJTA). Out of se funds, an amount of Rs 545 crores have been deposited with Yes Bank, Puri. se deposits are maturing in month of March 2020. This is an issue of religious importance for devotees of Lord Jagannath. In this background, I request you to kindly issue necessary instruction to RBI to allow release of funds related to SJTA in Yes Bank."

Read: Rana Kapoor Confronted: ED Shunts Yes Bank Founder To Court After Arresting Under PMLA

Yes Bank crisis

Reserve Bank of India (RBI) on March 5 said that financial position of Yes Bank Ltd has undergone a steady decline largely due to inability of bank to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits. RBI on March 5 had applied to Central Government for imposing a moratorium under section 45 of Banking Regulation Act, 1949 and moratorium was imposed on very same day. 

Read: ED Arrests Yes Bank Founder Rana Kapoor In Money Laundering Case

However, RBI had assured depositors that depositors' interest will be fully protected and re is need to panic. Reserve Bank of India on March 6 had placed in public domain a draft scheme of reconstruction of Yes Bank Ltd. As per RBI, State Bank of India has expressed its willingness to make an investment in Yes Bank Ltd. and participate in its reconstruction scheme. Yes Bank founder Rana Kapoor on March 8 was arrested by Enforcement Directorate in a money laundering case after questioning him for 20 hours. 

Read: BIG: Yes Bank Anunces Debit Card Operable At All Bank ATM's

Im Credit: PTI

Allow Puri Jagannath Temple to withdraw funds from Yes Bank: Odisha FM writes to Sitharaman