Points to be noted re: the four lakh credit arranged for the Raja of Ramgarh.

Summary

This two-page Swatantra Party Central Office memorandum records the terms and political context of a Rs. 4 lakh credit arrangement made for the Raja of Ramgarh. It states that the Party was not directly involved in the transaction between the Raja, the Central Bank, and New India Assurance, while documenting repayment terms of Rs. 20,000 per month, the Raja’s pledge of 33 jeeps as security, and his undertaking to maintain comprehensive insurance until the credit was repaid.

The memorandum distinguishes between the Party’s legal and moral responsibilities. It concludes that no legal commitment appears to involve the Party, but explains that the credit was arranged to assist Party candidates campaigning in Bihar, on the understanding that the jeeps would be made available to candidates endorsed by the P.S.C. It then lists complaints from constituencies including Gopalganj and Chapra that the Raja had failed to deliver the promised vehicles, despite repeated requests and communications from Party officials and candidates.

Key points

• The Swatantra Party says it was not directly party to the Raja of Ramgarh’s transaction with the Central Bank and New India Assurance.
• The Rs. 4 lakh credit was to be repaid at Rs. 20,000 per month, with the entire amount ideally paid back by the end of November.
• The Raja pledged 33 jeeps as the Central Bank’s exclusive property and agreed not to dispose of them without the Bank’s permission.
• The Raja was required to maintain comprehensive insurance policies with New India Assurance until the credit was repaid.
• The memorandum records that the Party had advanced Rs. 50,000 and arranged for a further Rs. 80,000 in four monthly instalments on the Raja’s behalf.
• Although the memorandum finds no apparent legal commitment involving the Party, it identifies a moral commitment arising from the intended use of the jeeps for Bihar election candidates.
• Complaints from Gopalganj, Chapra, and other constituencies allege that promised jeeps were not delivered.