Amidst depositor anger, Bengaluru co-op bank blames 62 dud loans for crisis

News Network
January 14, 2020

Bengaluru, Jan 14: Assuring depositors that their money was "100 per cent safe" with the bank, Sri Guru Raghavendra Sahakara Bank Chairman K Ramakrishna in Bengaluru on Monday said 62 loans had locked up Rs 300 crore of deposit.

"Your money is 100 per cent safe with Sri Guru Raghavendra Sahakara Bank. It's my responsibility," Ramakrishna said at Sri Guru Narasimha Kalyanamandira auditorium, to assure depositors.

He was addressing angry customers of the bank at a public hearing. Due to the 62 dud loans, the Reserve Bank of India (RBI) had restricted the lender from executing business, Ramakrishna said amid shouting by depositors. The RBI has limited withdrawals by depositors to Rs 35,000.

"The bank is saying I can't withdraw more than Rs 35,000. In case of our fixed deposit maturing, we will have to renew it as we can't encash it, " said Nagaraj M, 49, who has been dealing with the bank for the past six years.

To assuage customers, the call to an assistant commissioner of police by Bengaluru South MP Tejaswi Surya -- not present -- was relayed on loudspeaker live and the MP claimed that he had spoken to Finance Minister Nirmala Sitharaman to help the customers.

Ramakrishna said he would meet customers again on January 19 with all the details and numbers. Dramatic scenes and pandemonium ruled the auditorium before his arrival. Thousands of bank customers threatened to go en masse to the police station and file a case against Ramakrishna.

As he addressed the gathering in Kannada, hundreds of depositors shouted back at him seeking clarifications. At the auditorium, thousands of depositors earlier demanded the bank chairman's presence to clarify the matter.

The lender had invited depositors to the auditorium at 6 p.m. to update them on the bank's status, following a RBI directive restricting the bank from doing business with immediate effect.

"We want the bank's directors here," shouted a depositor from the stage. A handful of policemen were trying to control the crowd and bring order to the assembly. Many elderly and retired persons had arrived to know the fate of their savings. Several women were also present at the meeting.

"It was a good bank with only 0.5 per cent NPAs. Now we can't trust any bank. See what happened with the PMC Bank," said another customer.

Shankar Sharma, 38, an employee of a private company, said majority of depositors were senior citizens and retirees. "I don't have an account with the bank, but my mother, uncle, aunt have deposited money in it. I came for them, " said Sharma. He said many of the bank's 35,000 clientele deposited more than Rs 5 lakh, which had total deposits of Rs 1,600 crore. The bank started operations in 1999.

Ramakrishna was escorted away to safety by the police after his speech even as the depositors were screaming and agitating for justice.

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News Network
January 9,2020

Mangaluru, Jan 9: Noted city based tax accountant and former Rotary District Governor Surya Prakash Bhat passed away late this evening following brief illness. He was 62 and is survived by his wife Srimathi and two daughters Shruthi and Shravya.

Surya Prakash Bhat suddenly fell ill and had been in coma for the last two weeks due to complications arising from acute diabetes. He was undergoing treatment in the ICU at Yenepoya Hospital, Kodialbail. However he failed to respond to treatment and passed away at 9.20 p.m on Wednesday, January 8th.

He was an active Rotarian. He was an active member of Rotaract Club of Mangalore Central during his youth and then joined Rotary Club of Mangalore in 1989. After holding various positions in club level and the district level including Rotary District Secretary during the year 1995-96, he became club President of Rotary Club of Mangalore during its Golden Jubilee year in 1999-2000. Then on he rose to the position of District Governor of RI Dist. 3180 during 2003-2004. He was presently a member of the Rotary District Advisory Council.

Popularly known as "SURI", Surya Prakash Bhat was born in Mangalore on 8th May 1957. He had his early education in Milagres High School and graduated from St. Aloysius College. He did his articleship under Kamath & Rao Chartered Accountants. He has been practicing as a Tax Consultant since 1980 specializing in the fields of Goods & Service Tax (GST).

He has earlier served as Treasurer and Secretary of Kanara Chamber of Commerce & Industry, Mangalore. He also has been a Member of Finance & Banking Committee of FICCI, New Delhi; Member of Advisory Board, Department of Commercial Taxes as well as of Customs & Central Excise. He was one of the founders of The Karavali Automotive Sports Club, Mangalore and a Trustee of Shri Somanatha Temple, Someshwar, Mangalore.

Had been regularly anchoring programme like “Janadhwani”, a programme which highlights problems of common man, Elections Special and Budget Analysis in the local TV Channel.

Funeral will be held tomorrow in Mangalore.

Rotary Connection

Surya Prakash Bhat Joined Rotaract Club in 1976-77 and had won record 14 out of 15 awards in the district (Comprising of 8 Revenue Districts) as the best President during 1984-85.  He served as Rotaract District Secretary during 1985-86. 

He has been addressing various institutions, organizations and service clubs on matters of general interest, personality and individual development and Rotary. Has addressed the prestigious Rotary Institutes at Colombo and was trainer for the DGN’S at Cochin Institute, Bangkok Institute & SINGAPORE Institute. He was the President during the "Golden Jubilee Year" of Rotary Club of Mangalore during 1999-2000 when the club had bagged a record 28 awards in all.

He attended Rotary International Conventions at Singapore in 1999, at Denmark/Sweden in 2006 and New Orleans, USA in 2011,and Sydney, Australia in 2014. He was District Secretary during 1995-96 and then was the Club President during 1999-2000. He had initiated unique District Projects like “Sanjeevini” – Students Parents Insurance Scheme, “Jeeva” Highway Ambulance Project, Mid Day Meal for students of 6th & 7th Std children, Mobility Training Centre for the Blind etc. 

During the Governorship, RI Dist.3180 topped the world in membership development with 15 new clubs and 852 new members.  He has represented the Dist.3180 to Council on Legislation (decision taking body of Rotary International) at Chicago, USA during 2006-07.  Has been awarded “The Citation for Meritorious Service” by THE ROTARY FOUNDATION of Rotary International in recognition of his devoted efforts for the furthering of better understanding and friendly relations of people’s of the world. Has also been awarded “The Service above Self” citation of the Rorary International for the year 2011. Was the coordinator for Zone 6A & 6B covering around 12 countries for Literacy Programme of R.I for the year 2006-07.

Was the Chairman of the Dist. Trainers Training Programme at the Rotary Institute 2017-18 at Kuala Lampur, Malaysia.

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coastaldigest.com news network
February 14,2020

Bengaluru, Feb 14: In a major embarrassment to the police, the Karnataka High Court has termed as illegal the prohibitory orders imposed under Section 144 of CrPC by the City Police Commissioner in December 2019 in the light of the anti-Citizenship Amendment Act (CAA) protests in Bengaluru.

The orders were passed “without application of mind” and without following due procedures, the court noted. Giving reasons for upholding the arguments of the petitioners that there was no application of mind by the Police Commissioner (Bhaskar Rao) before imposing restrictions, a division bench of the High Court said he had not recorded the reasons, except reproducing the contents of letters addressed to him by the Deputy Commissioners of Police (DCPs). 

The state government had contended that prohibitory orders were passed based on reports submitted by the DCPs who expressed apprehension about anti-social elements creating law and order problems and damaging public property by taking advantage of the anti-CAA protests.  

The High Court bench said the Police Commissioner should have conducted inquiry as stated by the Supreme Court to check the reasons cited by the DCPs who submitted identical reports. Except for this, there were no facts laid out by the Police Commissioner, the court said.

“There is complete absence of reasons. If the order indicated that the Police Commissioner was satisfied by the apprehension of DCPs, it would have been another matter,” it said.  

“The apex court has held that it must record the reasons for imposition of restrictions and there has to be a formation of opinion by the district magistrate. Only then can  the extraordinary powers conferred on the district magistrate can be exercised. This procedure was not followed. Hence, exercise of power under Section 144 by the commissioner, as district magistrate, was not at all legal”, the bench said. 

“We hold that the order dated December 18, 2019 is illegal and cannot stand judicial scrutiny in terms of the apex court’s orders in the Ramlila Maidan case and Anuradha Bhasin case,” the HC bench said while upholding the arguments of Prof Ravivarma Kumar, who appeared for some of the petitioners.   

Partly allowing a batch of public interest petitions questioning the imposition of prohibitory orders and cancelling the permission granted for protesters in the city, the bench of Chief Justice Abhay Shreeniwas Oka and Justice Hemant Chandangoudar observed that, unfortunately, in the present case, there was no indication of application of mind in passing prohibitory orders.

The bench said the observation was confined to this order only and it cannot be applicable in general. If there is a similar situation (necessitating imposition of restrictions), the state is not helpless, the court said.

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coastaldigest.com news network
May 28,2020

Mangaluru/Udupi, May 28: Coastal Karnataka witnessed further spike in covid-19 cases today with 27 people testing positive for coronavirus in Udupi and six in Dakshina Kannada. 

Among 27 coronavirus patients in Udupi 18 are males and 9 females. Among them 24 have come from Maharashtra, two from Telangana and one from Kerala. All of them were under quarantine.

As many as 147 confirmed cases of coronavirus have been reported so far in the district, including a death. Three have recovered, and 143 are active.

In Dakshina Kannada, 2 females aged 18 and 62, and four males aged 25, 36, 50 and 61, are the ones to be tested positive. All the six persons to test positive are Maharashtra returnees.

With this, the number of cases in DK has increased to 87, out of which 51 are currently active. As many as 29 persons have recovered and been discharged, and seven deaths have occurred so far.

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