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
June 20,2020

Bengaluru, Jun 20: Nine candidates filed their nominations for the June 29 elections to seven seats of the Karnataka legislative council on Thursday.

While the BJP has fielded four candidates, the Congress has given tickets to two and the JD(S) to one candidate respectively for the biennial elections to seven seats of the legislative council to be elected by the MLAs.

One independent and one person claiming to be affiliated to BJP have also filed their nomination papers at the office of Legislative Assembly Secretary MK Vishalakshi, who is also the returning officer for the polls.

"The nominations of two candidates without any proposers is likely to be rejected during scrutiny of the papers on Friday. So seven candidates will be in the fray for as many berths. Hence the election is likely to be unopposed if no one withdraws nominations," official sources said.

While scrutiny will take place, Friday, June 22 is the last date for withdrawal of candidature.

The election is necessitated as the term of seven MLCs — Naseer Ahmed, Jayamma, M C Venugopal, N S Bose Raju, H M Revanna (all Congress), T A Sharavana (JD(S)) and independent D U Mallikarjuna — will end June 30.

Based on their strength in the Assembly, while BJP is in a position to win four out of seven seats, Congress can win two and JD(S) one.

Twenty-eight valid votes of MLAs are required for each candidate to win.

Four BJP candidates MTB Nagaraj, R Shankar, Sunil Vallyapure and Pratap Simha Nayak filed their nominations today, after the party high command announced their names late on Wednesday.

Nagaraj and Shankar had played a key role in the formation of the BJP government after the coup that led to the collapse of Congress-JD(S) coalition.They had subsequently defected to the saffron party.

While Nagaraj lost the bye-elections held later, Shankar did not contest in exchange for a Council berth promise.

Among the other BJP candidates, Vallyapure is a former MLA from Chincholi and had given up his seat abiding by the party decision to field Avinash Jadhav, while Nayak is a senior party worker and had served as Dakshina Kannada district president.

A BJP insider said Shankar and Vallyapure have been given MLC tickets as they had given up their Assembly seats, while Nagraj was considered as he had faced a defeat during the bypolls because party MP B N Bachhe Gowda's son Sharath contested as a rebel.

Nayak's candidature is being seen as BJP high command's choice by party insiders, ignoring the state units recommendation of AH Vishwanath, a former JD(S) MLA who had defected to BJP.

Two Congress candidates, senior party leader BK Hariprasad and incumbent Naseer Ahmed also filed their nominations today.

Hariprasad's name was announced by the party on Wednesday, even as his tenure in Rajya Sabha is to end on June 25.

Naseer Ahmed, who is retiring as MLC on June 30 is seeking another term.

The choice of candidates by the Congress high command is being seen as a mixed bag for CLP leader Siddaramaiah as Naseer Ahmed is said to be close to him, while Hariprasad is considered among his adversaries.

In a surprise move, JD(S) has fielded Govinda Raju from Kolar as the party candidate for the MLC polls.

Incumbent MLC T A Sharavana and outgoing Rajya Sabha member Kupendra Reddy were seen as the prime aspirants for the ticket.

JD(S) leader and former Chief Minister H D Kumaraswamy said Govinda Raju was chosen as it would help organise and strengthen the party in Kolar and Chikkaballapura region.

The independent candidate who has filed his papers today is P C Krishnegowda, and the one who filed his nomination claiming to be associated with BJP is Mandikkal Nagaraja.

Comments

Francies
 - 
Sunday, 21 Jun 2020

BJP has selected the candidates based on their wealth only and not on their education.    Wealth is the primary preference for bjp and these people come to politics only to skip from tax and accumulate unaccountable money and save black money.    they never come to politics with an intention to serve public.   We cant find 1 percent of politicians who is sincere and cares for public.    All of them are selfish and look their pocket only.   This is general in all the political parties.   

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News Network
May 17,2020

Bengaluru, May 17: Left to itself, Karnataka will look to spring back towards normalcy under Lockdown 4.0 as the state government is on standby to resume public transport services from May 18, if the Centre allows it. 

Though KSRTC and BMTC have been preparing for resumption of services, officials in the two corporations told DH that they cannot make a move till the government makes a decision.

Transport Commissioner N Shivakumar said the department will take a decision based on the state government's orders. "The government will take a call on buses as well as taxi and other transport services," he said.

Senior officials in the state government said Deputy Chief Minister and Transport Minister Laxman Savadi has written to Union Minister for Road Transport and Highways Nitin Gadkari seeking a nod for resumption of the services. 

Transport Secretary Gaurav Gupta has written a separate letter to his counterpart in the Union government requesting permission to operate public transport. "The state government wants the services to open. The official has listed out the steps the corporations will take to ensure social distancing other steps that will be taken to check spread of Coronavirus," a source said.

The B S Yediyurappa administration has been bullish on easing lockdown restrictions. 

If the Centre empowers the states to define Lockdown 4.0, Karnataka is likely to do away with the red-orange-green zoning of districts and allow public services to resume, except in COVID-19 containment zones. The government is also likely to redefine its containment strategy by micromanaging localities where COVID-19 cases are reported, without letting life in an entire district get affected. 

The government has already shown willingness to allow hotels and gyms to open after May 17 subject to social distancing norms and restrictions. In fact, the government has proposed to allow the resumption of all economic activities in standalone establishments. The government, however, is not keen on opening malls, theatres, diners and establishments that have centralized air conditioning. 

“Everything depends on the Centre,” Deputy Chief Minister CN Ashwath Narayan said. “Our only stand is that the red zone should be treated at par with the other zone when it comes to relaxation.” 

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News Network
February 26,2020

Mumbai, Feb 26: Targetting Shiv Sena's silence over the recent controversial remark by AIMIM leader Waris Pathan, former Maharashtra Chief Minister Devendra Fadnavis on Tuesday said the Uddhav Thackeray-led party might be "wearing bangles" but the BJP was not and knew how to retaliate in the same manner.

"Shiv Sena might be wearing bangles but we are not. If someone says something then he will be given an answer in the same way. BJP has this much power," said Fadnavis while launching a scathing attack on ruling-Shiv Sena in Maharashtra for not taking strict action against Pathan.

Fadnavis was addressing protestors at Azad Maidan where BJP launched a protest against Maharashtra government over issues related to farmers and women.

On February 20, while addressing an anti-CAA rally, at Kalaburagi in Karnataka, Pathan had said, "time has now come for us to unite and achieve freedom. Remember we are 15 crore but can dominate over 100 crores."

"They tell us that we have kept our women in the front - only the lionesses have come out and you are already sweating. You can understand what would happen if all of us come together," he had said.

Facing flak over his remarks Pathan later took back his words and had said he had not targeted any community but had spoken against members of some organisations.

"If any of my words have hurt someone, I take them back as I am a true Indian," Pathan said at a press conference here.

The AIMIM leader said that he was being portrayed as being anti-Indian and anti-Hindu for the past couple of days.

"I want to say that my earlier statement was basically against people who are members of organisations like RSS, BJP, Bajrang Dal, etc. These 100 are those people who want to divide this beautiful nation," he added.

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