Karnataka Bank filed a report to RBI of Rs.34.16 crore fraud case

The Karnataka Bank of Mangaluru has reported to the Reserve Bank of India around a fraud of INR 34.16 crore in their credit facilities to IL&FS transportation network. This account is presently inoperative. Karnataka bank has reported in the regulatory filing that the IL&FS transportation Works Limited had an outstanding balance of rupees 30 4.16 crore which is a defaulted entity.

Karnataka Bank has filed the report regarding the fraud case. Source: The Hindu

The company availed credit from the count during 2016 using multiple banking arrangements. In that arrangement, Karnataka Bank was also a member. In 2018 the borrowing account has categorized as a non-performing asset.

This company named IL&FS transportation networks Limited was a major construction and infrastructure financing company which was collapsed in late 2018.

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