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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coastaldigest.com news network
July 8,2020

Kasaragod, Jul 8: The meeting of Kasaragod district-level corona control core committee has resolved to make pass mandatory for vehicles to bring vegetables and fruits to Kasaragod from Dakshina Kannada and other parts of Karnataka.

Pass will be issued by RTO. Employees, including the driver of the vehicle, must visit the nearest primary health facility once in seven days and undergo a health check and submit a medical officer's certificate.

District Collector Dr D Sajith Babu, who presided over the meeting, said that only those vegetable and fruit vehicles that produce medical officer's certificate and RTO's passes will be allowed to cross the border.

Meeting, the RTO has decided to convene an emergency meeting of vegetable and fruit merchants.

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News Network
March 31,2020

Bengaluru, Mar 31: The total number of confirmed cases of coronavirus in Karnataka rose to 98 on Tuesday, according to the state government.

This includes 3 deaths and 6 patients who were cured and discharged, leaving the active cases to 89.

Meanwhile, Karnataka Home Minister Basavaraj S Bommai said that his government has succeeded in tracking more than 24 people in Bengaluru, who attended the Tablighi Jamat event in Delhi held earlier this month.

"Over 24 people, who attended Tablighi Jamaat event in Delhi, tracked in Bengaluru. We have quarantined 54 people. 8 people also in Bidar. 1 person found positive in Bidar and we have quarantined him. There are people who attended jamaat from almost all districts of the state," Bommai told news agency here.

Delhi's Nizamuddin area emerged as a hotspot after a religious meeting was held at Markaz by the Tableeghi Jamaat earlier this month, and several COVID-19 positive cases have been found among those who attended the gathering.

At least 24 people staying at Markaz building in Nizamuddin area of the national capital have tested positive for coronavirus, Delhi Health Minister Satyendar Jain on Tuesday.

"All of them are being screened. We are not certain of the number but it is estimated that 1500-1700 people had assembled at the Markaz building. 1033 people have been evacuated so far - 334 of them have been sent to the hospital and 700 sent to quarantine center. A total of 24 positive cases have been found so far," he said while speaking to reporters here.

The minister also slammed the organizers of the religious event saying that they have committed a grave crime.

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News Network
February 2,2020

Mangaluru, Feb 2: A local court on Saturday remanded Aditya Rao,the suspect in the Mangaluru International Airport (MIA) bomb case, to two weeks judicial custody.

Rao was produced before the Sixth Judicial First Class Magistrate Court after the 10-day police custody expired.

Rao has been in police custody since January 22 after he surrendered before the police in Bengaluru on January 21 and was later brought here.

He had allegedly planted an Improvised Explosive Device (IED) at the airport on January 20 triggering panic and later made a hoax call to the airport terminal that a bomb had been planted in an IndiGo flight.

During the last ten days, police took the accused to several places in the city and Udupi where he had frequented in the recent past.

He was also taken to the room where he stayed while he was working at a hotel in the city.

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