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
Kumar!! Shut up!! Don't blame his parents, and exactly nobody know what took place there..
Rider must have controlled the bike... So it depends on rider, how he rides..., imagine how hurted parents are? Instead blaming them...
And think twice before you type sh*t
Dear Mr. Kumar, your comment reflects your immaturity, lack of understanding of the situation and although I'm sure your intentions were at the right place. I would like to tell you that the deceased and both the parents were not fools. Only you seem like a fool here for that insensitive comment. I hope no harm comes to you and ur loved ones and you are not called a fool for it. I wish you a safe life. Also, I hope you did pray for the departed soul.
Dear Mr Kumar, your comment shows your lack of understanding of the situation. Also the parents were not at fault here. Since you didn't know the person and since the full situation is not given.. I would suggest you would shut up before passing blame or using such words about the deceased person. The person and parents were both not fools. The only fool I see here is you. I suggest you stay safe though. And no harm comes to you. And people not call you a fool after such a tragic incident. Also thank you Mr./mrs.shaji for showing maturity and decency.
Dear Kumar, we cant blame parents. sometimes, they are helpless agaisnt the hard will of their kids. Some boys even say to their parents that they will discontinue study in case their demand is not met. May God bless kids with correct way of life.
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