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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
January 19,2020

Mangaluru, Jan 19: ‘Ride For Rotary’ convoy of motor vehicles was flagged off from Hotel Ocean Pearl Inn at Bejai-Kapikad, Mangaluru on Sunday, 19th January, 2020 at 9.00 a.m. Rotary district governor Joseph Mathew flagged off the event along with Assistant Governors Sumith S. Rao, Geethanand Pai and Ritesh Baliga. The riders headed for Puttur after topping up their fuel tanks at Lady Hill Petrol Pump.

2019-20 Ride For Rotary includes 28 motorbikes and 5 cars. 38 Rotarians from 14 countries are participating, in this, the fourth edition of the event. They will traverse through Madikeri, Mysore, Wayanad, Ooty, Coimbatore, Munnar, Thekkady and Allepey before terminating at Kochi on 29th of January, 2020. The participating nationalities are India, Norway, Sweden, Canada, France, Germany, USA, UK, Switzerland, Austria, Denmark, Poland and Belgium. They belong to ages 21 to 78, with 78-year old Otto Rieve from Canada being the senior most enthusiast. Swiss national of Indian origin Raj Patholi and Mangalorean Abraham Zacharias are among the riders. 

Mangalore was chosen as the starting point for the convoy route this year which will cover Kerala, Karnataka and Tamil Nadu. On the eve of the event, the organizers hosted a gala dinner for the riders at Citi Beech, Bolar. The riders were given a glimpse of the traditional dance forms and were treated to some wonderful songs in Tulu and Kannada along with local coastal cuisine.

They were also given a glimpse of the major service projects undertaken in our district by Rotary, such as the Rotary Blood Bank on Wheels, the Physiotherapy Clinic at Wenlock Hospital, the Schools adopted by Rotary and the Ashrams and Villages that are being served by Rotary. The idea behind this is to see that riders carry these memories and think of helping Rotarians in India through their matching contributions for future service projects.

‘Ride For Rotary’

Ride for Rotary is a charity event conceived by Rotary District 3181 which comprises of the revenue districts of Mysore, Kodagu, Dakshina Kannada and Chamarajanagar covering 85 Rotary Clubs in 9 zones. Rotarians from across the world will come together for twelve exhilarating days. They will traverse through the meticulously arranged routes, enjoy the natural beauty of the places and experience the varied cultures and cuisines of the region. Ride for Rotary connects people and places like no other - Rotary Connects the World.

The proceeds from the event go to The Rotary Foundation, a charitable organisation that works tirelessly for the upliftment of the society.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 1,2020

Palakkad, Jun 1: An 11-month-old boy, whose parents are placed under COVID-19 quarantine, drowned in a bucket of water in Chalissery at Palakkad district.

The toddler Muhammed Nisan was the son of Muhammad Sadiq. The parents of the child are under home quarantine after Sadiq's brother, who is living in the same home was tested positive of COVID-19.

The child was found dead in a bucket of water kept in the bathroom on Saturday around 10 pm.

Chalissery police said that ''further actions will be taken only after the test result comes out. We have filed an unnatural death case on this.''

Since the family has been quarantined, the body of the baby has been shifted to the Thrissur Medical College for COVID-19 testing.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 16,2020

Madikeri, Apr 16: A man from Ketumotte in Virajpet, who was cured of COVID-19 and returned to his home, has again been admitted to the hospital, following a complaint of fever, on Wednesday noon.

The man, who voluntarily got admitted to the hospital, is being treated in the isolation ward of the Covid-19 hospital. His throat swab and blood samples have been sent for testing. The report is likely to be out by Thursday morning.

After getting discharged from the hospital on April 7, he was home quarantined. After a week, he developed fever again. The person has not moved out of his house and the people need not fear, said Deputy Commissioner Annies Kanmani Joy.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.