Karnataka Bank reports over Rs 285-cr fraud in four loan accounts

News Network
June 6, 2020

Jun 6: Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL.

A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to Dewan Housing Finance Corporation Ltd (DHFL), Religare Finvest, Fedders Electric and Engineering Ltd and Leel Electricals Ltd, Karnataka Bank said in a regulatory filing on Friday.

The maximum is owed by DHFL at Rs 180.13 crore, followed by Religare Finvest Rs 43.44 crore, Fedders Electric Rs 41.30 crore and Leel Electricals Rs 20.65 crore.

"DHFL (defaulted entity) dealing with us since 2014 had availed various credit facilities under consortium arrangement wherein, we were one of the member banks. In view of Early Warning Signals (EWS) in the conduct of the account and other developments, the account was red flagged on November 11, 2019.

"The borrowing account was classified as Non-Performing Asset on October 30, 2019 and now, for misappropriation & criminal breach of trust & diversion of funds in the credit facilities extended earlier to the company, a fraud amounting Rs 180.13 crore has been reported to RBI," Karnataka Bank said.

Likewise, Religare Finvest Ltd (RFL) was dealing with the bank since 2014, availing various credit facilities.

Following classification of this account as non-performing in October 2019 by a consortium member, Karnataka Bank reported to RBI a fraud amounting to Rs 43.44 crore in the credit facilities extended earlier, on account of diversion of funds.

Leel Electricals was classified as NPA account in March 2019 and it reported to RBI a fraud amounting to Rs 20.65 crore in the credit facilities to the company on account of diversion of funds.

"In all the referred three non-performing accounts, necessary provisions have been made in full to be spread across four quarters," it said.

Fedders Electric and Engineering Limited was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion.

The account has already been fully provided for, it added.

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News Network
April 11,2024

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Bengaluru, Apr 11: Congress leader Rahul Gandhi and the party's unit in Karnataka have highlighted the statement of Class 12 Board exam topper from the state, Vedant Navi, and claimed that "it was a matter of pride as their schemes were bringing effective social and economic changes".

The Congress on Thursday launched a social media campaign by releasing posters and short videos.

Rahul Gandhi in his social media post said, “Such 'Success Stories' make me believe and ensure that our 'Mahalakshmi' guarantee of putting Rs 1 lac every year in women's accounts will prove to be a revolutionary step to shaping the country's fate.”

“Congress's Gruha Lakshmi scheme going on in Karnataka under which more than 1 crore women get Rs 2,000 every month, using the same money a mother taught her son Vedant and he got second rank in the whole state in PUC exam,” Rahul Gandhi stated.

“Vedant's story is a living example of Indian women's penance and willpower to strengthen the house with pai-pai. Imagine, when women of poor families across the country will get Rs 1 lakh every year through the 'Mahalakshmi Yojana', how many Vedantas will change the future of the family with their talent? This historic plan of Congress will give the dreams of poor families a flight into reality,” Rahul Gandhi said.

The Congress in Karnataka said the schemes of the government were giving succour to the people. “It is a matter of pride that in a span of 10 months, our government’s schemes are bringing effective social and economic changes,” the party claimed.

“It is a testimony to the success of the Gruha Lakshmi scheme that the family of Vedant, who secured first rank in the Arts stream, was supported by the money provided by the Gruha Lakshmi scheme. Our schemes have brought changes in many people’s lives. The Congress party has built the lives of the people and thereby built the nation,” the Congress stated.

Vedant Navi had secured first rank in Arts Stream in Karnataka. He is the overall second-topper.

“My father is no more. My mother faced difficulties as the family was debt-ridden. In this crunch time, the money received through the Gruha Lakshmi scheme (Rs 2,000 every month given for women heads of family) helped my studies and hostel stay and other expenditures,” Vedant had stated.

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News Network
April 13,2024

Mangaluru, Apr 13: Prime Minister Narendra Modi is all set to campaign for the upcoming and much awaited Lok Sabha election in coastal Karnataka by holding a mega roadshow in Mangaluru. 

Meanwhile, the organisers have announced a slight delay in the commencement of Modi's scheduled roadshow on April 14 in Mangaluru.

Addressing the media BJP principal secretary and Karnataka MLA V Sunil Kumar said: Originally the roadshow was scheduled to begin at 5 pm., but it will start at 7:30 pm."

As planned, the Roadshow will kick off from Narayan Guru Circle, where Prime Minister Modi will pay floral tribute to Sri Narayan Guru idol. From there, the Roadshow will proceed and conclude at Navabharat Circle. 

Mr Kumar urged people traveling to Mangaluru to see Mr Modi's visit by 7 p.m. and stand behind the barricades. The roadshow is estimated to conclude at 8:30 pm.

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coastaldigest.com news network
April 10,2024

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Mangaluru, Apr 10: Hundreds of thousands of Muslims in the coastal city of Mangaluru and other parts of coastal Karnataka today observed Eid-ul-Fitr, marking the end of 29-day-long blessed month of Ramadan. 

The occasion falls on the first day of the 10th lunar calendar month of Shawwal, the start of which varies based on the sighting of the new moon.

Braving the scorching sun, Muslim men and children - and in some parts women too - thronged Eidgahs and mosques to express gratitude to their Creator by offering Eid prayers after distributing Zakat and Fitr among the poor and needy.

While praying for the acceptance of their month-long fasting and charity among other deeds, the imams also prayed for the acceptance of sacrifices of people of Gaza wherein Israel regime’s bloody war claimed thousands of lives including children and women in past six months.

Twaqa Ahmed Musliyar, the Qadhi of Mangaluru, led the Eid prayers and delivered the sermon at the historic Eidgah mosque at Lighthouse Hill. “We have fasted for a month to comply with the command of the Almighty. Let us also lead a pious life in the remaining 11 months of the year,” he said.

He exchanged Eid greetings with the devotees and called upon them to remember the lesser privileged people and needy during the festivities. “We have a social responsibility towards the poor and needy. As long as we attend to their problems, God's blessings will continue to shower upon us,” he said.

Karnataka Legislative Assembly Speaker U T Khader and several people’s representatives offered prayers at Eidgah mosque. Volunteers from Zeeanth Bhaksh masjid helped the police in maintaining traffic and discipline.

Children dressed in festival attire added colour to the celebrations. People wished Eid Mubarak and hugged each other.

The Eid prayers were held in all prominent mosques across the city. Taqwa Masjid in Pumpwell, Masjidunnoor in Hampankatta, Ihasan Masjid near Unity Hospital, Bolar Islamic Centre in Bolar, Ibrahim Khaleel Masjid near State Bank, Jamia Masjid in Kudroli and Kachi Memon Masjid in Bunder were overcrowded with devotees. Several thousand devotees offered prayers at Central Juma Masjid in Ullal on the outskirts of the city.

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