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.
Comments
But BJP was able to do it in UP and Gujarat since EC is in its pocket
After model code of conduct came into existence in Karnataka, Congress crooks are not able to distribute money (both black money & fake currency) freely to get people for Pappu rallies like before.
Why can’t the idiot understand that Kannadigas have no interest in meeting him to listen to his nonsense.
Because it is a BJP stronghold and naturally communally sensitive region!
"Rahul asked party workers not to brag about their achievements and the
achievements of ministers, but to focus on key issues of each region
that ensure victory"
Is there anything to brag? And, he is advising to focus on key issues, now, during the election time? What were they doing for last 5 years?
Congress has change for its own good. Party party hierarchy, should be strong. The party must have zero tolerance on Corruption in the name of Party funds. Collect money from ministerial aspirants and Chairmen of statutory boards. Why other parties speak lightly about Congress is due to situation that is prevailing in the Congress. Native Congressmen are sidelined with migrated defected leaders. No one is listening or giving chances to hear views. This time Congress will learn a hard lesson for sidelining devout and loyal Congress leaders and giving prominence of migrants. Even senior leaders like Mr.Jaffar Sheriff and Moily are sidelined. Mr. S.M. Krishna left the party due to not giving importance to his seniority or experience. Now one after the other will start leaving the Congress after out come of the elections in Karnataka.
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