Normal life hit across Karnataka as transport unions strike work

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.

Bengaluru, Jun 22: Senior Congress leader BK Hariprasad and BJP’s MTB Nagaraj, one of the defectors who helped the saffron party come to power in Karnataka, were unanimously elected to the Legislative Council along with five others on Monday. 

All seven were declared as “duly elected” by Legislative Assembly Secretary MK Vishalakshi, the returning officer for the biennial election to the Legislative Council. 

Hariprasad and Naseer Ahmed of the Congress, Nagaraj, R Shankar, Prathap Simha Nayak and Sunil Vallyapur of the BJP and Govinda Raju of the JD(S) are now MLCs. 

While Ahmed was an incumbent who will get another term, the six others will replace Jayamma, MC Venugopal, NS Bore Raju, HM Revanna and TA Sharavana and DU Mallikarjuna whose term ends June 30. 

While an election was scheduled June 29, it was not necessary as only seven candidates were in the fray for the seven seats on Monday, which was the last date for withdrawal of nominations. The nominations of A Yadavanahalli PC Krishnegowda and Mandikkal Nagaraja were rejected. 

With their rejection as MLCs, Nagaraj and Shankar - who jumped ship to the BJP last year - will now look to become ministers in Chief Minister BS Yediyurappa’s Cabinet. Both Nagaraj and Shankar were ministers when they resigned and defected from the Congress-JD(S) coalition. While Nagaraj lost the December 2019 bypolls, Shankar did not contest. 

Nagaraj, Shankar and Vallyapure were Yediyurappa’s picks for the Council, whereas Nayak is said to have been backed by BJP state president Nalin Kumar Kateel. 

There were many aspirants in the Congress for the Council berths, but Hariprasad and Ahmed were picked, given their experience. Hariprasad is widely believed to counter Siddaramaiah, who leads the party in the Assembly. 

Raju of the JD(S) runs a poultry business in Kolar and the choice of a fresh face is seen as the party leadership steering clear of any trouble as there were many asking for the ticket. 

Udupi, Mar 2: The Kundapur police carried out raids at various clubs in Kundapur Sub-division limits and arrested around 50 persons involved in illegal gambling and seized Rs 2.5 lakhs from their possession, the police said on Monday.

According to the police, on Sunday night, based on credible information, the Kudapur Sub-division police led by ASP Hariram Shanker and team raided various clubs in Goliyangadi, Siddapur, Koteswar and Basrur where the accused were found gambling illegally.

All the clubs had taken court permission for recreation but were illegally indulging in gambling. They had also violated the court conditions and were involved in illegal gambling.