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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
April 22,2020

Mangaluru, Apr 22: A team of officials raided the Big Bags International Pvt Ltd premises here on Tuesday following the apprehensions expressed by locals that the company has violated lockdown rules by resuming operations on April 20.

On Monday several workers of the firm from Kerala, Tumakuru and Bengaluru were reported to be at the premises to resume operations.

The raiding team asked the management to temporarily shut down operations and asked the workers to leave the place.

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News Network
August 9,2020

Shivamogga, Aug 9: Minister of State for Railways Suresh Angadi on Saturday virtually inaugurated Malgudi Museum at Arasalu in Karantaka's Shivamogga.

The old station building at Arasalu has been converted into museum.
BJP MP from Shivamogga BY Raghavendra said that the old station building at Arasalu has been renovated keeping with 'Malgudi' theme in mind.

"It is a tribute to the makers of the popular television serial 'Malgudi Days' as the station features predominantly in the episodes which broadcast on Doordarshan in the 1980s," he said.

The museum has been designed by a famous artist John Devraj, who was the part of the serial Malgudi Days. The Mysore Divisional Railway funded the museum.

"The approach road and station area wear a new transformed look. The innovative idea of having a tea-shop in a narrow gauge coach at Arasalu station adds charm to the green surroundings," the MP said.

"Popular and internationally acclaimed serial Malgudi Days was shot here in Arasalu. The SWR Mysore division manager Aparna Garg helped to transform the station to fictional village Malgudi," he added.

The museum is about 30 km from Shivamogga city. It has steam engines and bogies besides collections of photographs hanging on the wall taken during the time of shooting for Malgudi Days.

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News Network
July 13,2020

Bengaluru, Jul 13: The Bruhat Bengaluru Mahanagara Palike (BBMP) has initiated the process of recruiting 1,700 medical professionals, doctors, staff nurses and support staff to scale up its workforce to set up 30,000 COVID-19 care beds, an official said on Sunday.

According to the official, to establish and run 30,000 COVID care beds, 1,800 doctors and 3,600 nurses are required. A 10,100-bed facility was set up last week in the Bengaluru International Exhibition centre (BIEC) on Tumkur road.

The Health Department has calculated that one doctor per shift is needed for every 100 patients and one staff nurse for every 50 patients. Similarly, two supporting staff and three Group D employees are needed per shift for every 100 patients. Generally, a day is divided into three shifts of eight hours each.

According to the director of medical education, there are 25,000 nursing students who have completed GNM and BSc Nursing courses and are pursuing higher education.

Likewise, there are 3,231 medical, dental and Aayush interns, while MD and MS postgraduate students have been identified to be 1,613 in Bengaluru colleges.

"The department plans to actively utilise the services of interns and postgraduate students for the COVID Care Centre (CCC) operations," said the official.

Currently, there are 2,100 CCC beds operational under the civic body in Bengaluru with a pool of 503 doctors, 167 ayush doctors, 128 nursing and paramedical staff.

Earlier in May, the civic body also notified the recruitment of 380 microbiologists, technicians and data entry operators for six months. In June, the civic body again notified the recruitment of 637 doctors, nurses, technicians and group d employees to strengthen its fight against the pandemic.

Bengaluru has recently seen a spike in COVID-19 in Karnataka, accounting for 61% of all active cases in the state.

On Saturday, the city reported 1,533 new cases, taking its total tally to 16,862, of which 12,793 are active.

Karnataka recorded 2,798 more coronavirus cases and 70 more casualties on Saturday evening, raising the state's total cases to 36,216 and the death toll to 613.

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