Daijiworld Media Network – Mangaluru (SB)

Mangaluru, Aug 11: John Sylvester Saldanha, one of the partners of Providence Builders and Developers, was arrested by police regarding a case filed against him for misuse of public money and cheating by Mangalore Catholic Co-Operative (MCC) Bank.

The manager of MCC Bank had lodged a complaint against the business partners of Providence Builders and Developers at Mangaluru city police station.

As per the complainant, John Sylvester Saldanha and Zeena Roopa Saldanha, the partners of Providence Builders and Developers applied for a loan in 2012 from MCC Bank’s Ashok Nagar branch for their new project ‘Providence Cascade’ which contains 38 flats. After verification of documents and guarantee on an agreement, bank sanctioned a loan of Rs 1.38 crore for them with two terms.

John Sylvester Saldanha

As per agreement, after completion of construction work, the partners sold 13 flats with permission of bank and repaid a little amount. But later, they sold the remaining flats without knowledge of bank and have not even repaid the balance amount of Rs 63,39,256.

As per bank, the partners are keeping huge arrears of loan amount with a motive of deceiving the bank and misusing the public money by selling the flats without obtaining prior consent from the bank.

Based on the complaint, Mangaluru city police have registered the case under section IPC 34, 406, 420 and 417.

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Comment on this article

Francis Pinto, Kinnigoli/Bejai
Wed, Aug 14 2019
It was a very good action taken by MCC Bank.We should appreciate to all Management and Stafs of the Bank.

DisAgree [1] Agree Reply Report Abuse
Ransom Saldanha, Mangalore
Tue, Aug 13 2019
Project of 38 Flats completed with a Bank loan of 1.38 crores says it all. If the Bank had documented the project funding and placed proper risk triggers, obtained timely PPC,s while lending then would know the actual source of funding used for this project other than Bank loan.

The committee that approved such a loan has to justify their role of analyzing the purpose of funding and management is responsible for putting the Bank’s net asset at risk. In all magnanimous cases that we refer and know, delighted officers holding office are taken to task by RBI panels with proper enquiry. We may then term them as scapegoats but they are holding such an office for a reason, hence let’s not get defensive to support the wrong doing of the management as probing into such matters bring out the hidden facts of the case.

Let the Bank do proper financial lending that helps the borrowers! Name lending done to known people associated with Directors has put both borrowers and the Bank in trouble many times even in the past. Don’t intend to debate on this further as we earn only black points for being fair and not defensive.

DisAgree [2] Agree [5] Reply Report Abuse
NN, NN
Wed, Aug 14 2019
I hardly see your name in this portal in the past but all of a sudden you posted 5 messages supporting the accused. Is the accused related to you?

DisAgree Agree [1] Reply Report Abuse
NN, NN
Tue, Aug 13 2019
Mr. Ransom Saldanha, I do not disclose my identity on this portal for the reasons best known to me. I have been writing on this portal since its inception and experienced bias due to my name, religion and the place where I live. Besides, I do not want to get any brownie points by writing on this portal. I just want to make my point across without anticipating any gratification. So, let us keep it as NN, NN. as you keep your identity as "Ransom" Saldanha.

I do not quite understand what you are tying to say. Are you saying that if the loan is not paid back, it is lenders fault? I don’t buy that arguments. If that is the case all bank officials who lent the money to big shots like Mallya, Dhoots et, al should have been in jail by now. Lending institutions have established standards and procedures to approve the loan and there is also a review committee before they hand over the loan money. All I was trying to say in general that if a person has enough assets to pay back the debt, he/she should pay. Or else, it will be considered a willful default which is a crime.

I also suggest that government should enact a new law giving the authority to the lending institutions to file insolvency on behalf of the debtor, if he/she fails to meet obligation. (I know this sounds strange as this is a new idea and needs to be discussed at length). This is based on the theory that if you can’t pay your debt, you are insolvent. If you have enough assets and you don’t want to pay back the loan, you are committing a fraud. Please be assured that there is nothing personal. Just exchange of opinions.

DisAgree Agree [1] Reply Report Abuse

Ransom Saldanha, Mangalore
Tue, Aug 13 2019
Mr. NN appropriate if you please take the courage to disclose your identity in such forum instead of masked NN,NN. Whatsoever, agree to your point on stringent action be taken on willful defaulter to protect depositors money and also extend it on the responsible management members as it is equally important for the Bank to adheres to proper lending policy while lending public’s money.
In this case from the summary it is evident that the Bank failed to ring fence the collateral liquidation towards loan repayment. Hence this is a serious lapse on Banks part.
Responsible members of the management committee who approved this facility should be held fully accountable for recklessly lending public money just in good faith without adhering to fundamental lending principles. As such in the interest of the depositors and shareholders pray that the Registrar of Co-operative Societies and the RBI officials investigate into this matter as from its outset appears to be can of worms.

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NN, NN
Sun, Aug 11 2019
What I understand that the Cooperative societies have upper hand in recovering debt than the commercial banks. They can attach the property without going through the court. People who have assets and no intention of paying their debts should be prosecuted. Swindling public money is a crime. I am sure John will now settle his dues. MCC should do this to every debtor without any favoritism.

DisAgree Agree [1] Reply Report Abuse
Ransom Saldanha, Mangalore
Mon, Aug 12 2019
If what you stated is true GNPA and NNPA of Co-operative Banks should be below the prescribed threshold always. Unfortunately it’s the other way round. NN your submission seems to have close association with Co-operative bank . How can a defaulter pay it he has no money to pay? Arrest him or hang him his cash position does not change my friend. It’s the good wisdom and intent of the recovery officer which matters for recovering overdue amount in banking not emotional reaction!

DisAgree Agree [4] Reply Report Abuse
AMAR NATHAL, MANGALORE
Mon, Aug 12 2019
Good observation by Ransom Saldanha, Mangalore. There is gross negligence by the Bank. Did the Bank put any notice at all the sites that the buyers need to contact the bank before purchasing the flats? Secondly, you can not build 13 flats with 1.38 crores.

DisAgree Agree [1] Reply Report Abuse
NN, NN
Mon, Aug 12 2019
If the borrower does not have money to pay back his debt, he/she should file for insolvency in which case a Receivership will take over all the assets. The investigation will reveal that whether or not the borrowed money spent for the purpose it was borrowed. The investigation will also reveal any misrepresentation in loan application, subsequent transfer of assets in someone else's name to avoid paying back the debt etc. The financial institution cannot sit on NPA. They are in the business of lending money in good faith. The bank officials also have a fiduciary duty to act in the best interest of depositors/share holders. I support MCC's initiative. If a person has done nothing wrong but genuinely lost in his business, then there is always an alternate solution to work out the repayment.

The Saala MeLa of 80s has ruined the morals and ethics of repayment of debt. Sala manna is another form of insult to injury. In both cases, the losers are the honest depositors.

DisAgree [1] Agree Reply Report Abuse
Rudolf Rodrigues, Mumbai
Sun, Aug 11 2019
All big financial frauds can never happen without involvement of top officials; it's only when the heat builds up, they wake up and create scapegoats!!

In the STOCK MARKET, everyday you can hear one story of fraud wherein it's found that all accounts are fudged in connivance with rogue auditors & share prices pumped up to astronomical heights at which they are pledged to banks whereas the actual Mkt rate will be less than 1/4th of pledged rate; this money is siphoned off by promoters using various jhumlas; and after the manipulation of accounts is discovered, a freefall starts wherein there are only sellers and the bank starts trying desperately to sell the shares at the cut off rate, but is not able to this leading to heavy losses! IT IS IMPOSSIBLE TO DO SUCH BIG JHUMLAS W/O TACIT SUPPORT OF ALL INVOLVED! THE ULTIMATE LOSER IS THE INNOCENT COMMON INVESTOR; BANKS JUST WRITE OFF THE LOSSES!

AT THE END NOBODY IS HELD ACCOUNTABLE FOR "OBVIOIS REASONS "!!

WHERE ARE WE HEADING?

DisAgree Agree [14] Reply Report Abuse
Ransom Saldanha, Mangalore
Sun, Aug 11 2019
Management of the Bank should be held accountable for reckless lending without ring fencing loan repayment for mortgaged assets. Something is fishy in here, request Registrar of Co-operative Society and officials of RBI to investigate and hold responsible Directors accountable for this loss.

DisAgree [1] Agree [23] Reply Report Abuse
J.F.D SOUZA, Attavar, Mangalore
Sun, Aug 11 2019
Such a stern action taken by MCC Bank for trying to dupe by swindling public money needs to be appreciated. In others cases also take similar action and safeguard our Bank.

DisAgree [3] Agree [21] Reply Report Abuse
Ransom Saldanha, Mangalore
Sun, Aug 11 2019
Fraud or gross negligence on part of the Bank? Time should tell!

DisAgree [3] Agree [14] Reply Report Abuse
Rudolf Rodrigues, Mumbai
Sun, Aug 11 2019
Bro, Is it "NEGLIGENCE OR CONNIVANCE" ???

DisAgree Agree [8] Reply Report Abuse

Indian, Mangalore
Sun, Aug 11 2019
First of all Mcc Bank is a biggest fraud bank. Not at all reliable.

DisAgree [2] Agree [2] Reply Report Abuse
Eric Coelho, Mangalore
Sun, Aug 11 2019
There is a beautiful saying with regard to Real Estate - "THERE IS NOTHING REAL ABOUT REAL ESTATE". EVERYTHING IS FAKE.

DisAgree [3] Agree [24] Reply Report Abuse
YOGI THUNTA, MANGALURU - NEAR PUMPWELL CIRCLE
Sun, Aug 11 2019
This is a rarest to rare case as CHRISTIAN community is god fearing and you can find almost 1 percent crimes comparing to others ! so people what i mean to say that every community has to bad and good apples that is called society ! Crime happens and therefore we formed rules and regulations to punish it and obey !

DisAgree [3] Agree [30] Reply Report Abuse
Rudolf Rodrigues, Mumbai
Sun, Aug 11 2019
Lacs of people have been trapped badly, in Mumbai, by not getting delivery of flats even after paying majority of the cost price; they are now running from pillar to post to get their money back!

Moreover, now, due to banks becoming very strict and money from open Mkt not easy to get many small & medium builders are in dire straits with construction stuck halfway tending buyers in a soup!!

DisAgree [2] Agree [17] Reply Report Abuse
Prabhu, Karkala
Sun, Aug 11 2019
This is the good excuse to loot our own people

DisAgree [1] Agree [19] Reply Report Abuse
John, Manglore/Kuwait
Sun, Aug 11 2019
Some time I feel like laughing because of these banks.!!
They give lakhs/crores of money for thieves and they keep a pen on the counter for filling the challen of course tied with a thread. Just imagine one rupee pen they are tying!!
You will not find anywhere in the world pen tied with thread!!!
This clearly shows our banking system how much we are developed

DisAgree [19] Agree [37] Reply Report Abuse
Rudolf Rodrigues, Mumbai
Sun, Aug 11 2019
A big recession is in the offing starting next year, which has already kick started with the auto sector; stock market is in shambles as more and more and more frauds are coming up, real estate is in deep distress, PSU banks in a big soup! All this is not highlighted in media!

All this will have a cascading effect on jobs! Coupled with this, the losses due to nature's fury will add to the inflation woes!

STAY AWAY FROM STOCK MARKET, WHICH IS A DEN OF CORRUPTION WHERE COMMON INVESTORS HAVE LOST HUMONGOUS AMOUNT OF WEALTH; KEEP AWAY FROM REALTY; IF NEED BE OPT FOR RENTAL HOUSES! GOLD IS THE ONLY HIDING PLACE AS USA/CHINA TRADE WAR WORSENS!!

EXPECT MANY MORE SUCH CASES (PROVIDENCE) COMING OUT IN THE OPEN IN TIMES TO COME!

DisAgree [4] Agree [36] Reply Report Abuse
Eric Coelho, Mangalore
Sun, Aug 11 2019
In India those who avail loans from bank especially business working capital, trade finance (like Nirav Modi and Choksi), Term Loans (like Vijay Mallya and many others), believe in one way transaction, take and receive and don't pay back or they don't believe in paying back. We come across of unpaid loans in Flat and Vehicle purchase in huge numbers and amount. Mangalore is having the high end cars because they think driving an High End car is a prestige issue.

DisAgree [1] Agree [30] Reply Report Abuse
Rudolf Rodrigues, Mumbai
Sun, Aug 11 2019
Many banks have shut vehicle loan division in Mangalore because of high delinquency rates!

DisAgree [3] Agree [20] Reply Report Abuse
Indian, Mangalore
Sun, Aug 11 2019
First of all Mcc Bank is a biggest fraud bank. Not at all reliable.

DisAgree Agree [3] Reply Report Abuse

Indian, Mangalore
Sun, Aug 11 2019
But Mcc Bank is giving loan on vehicle @ 9.50%
And bank PPL keep on calling we are giving this much rate of interest for the purchase of vehicle.
Now a days every one is worried about the cash crunch

DisAgree Agree [4] Reply Report Abuse
Vincent Rodrigues, Katapadi/Bangaluru
Sun, Aug 11 2019
Good to arrest the criminals who involved in frauds.

DisAgree [1] Agree [35] Reply Report Abuse
Sanjay Serrao, Mangalore
Sun, Aug 11 2019
MCC management who influenced the branch is also equally responsible! Now don't make the poor branch manger scapegoat.

DisAgree [1] Agree [51] Reply Report Abuse
Ajay Kumar, Karkala
Sun, Aug 11 2019
Only happens after 2014...one by one come to notice.

DisAgree [9] Agree [60] Reply Report Abuse

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Mangaluru: Builder John Sylvester Saldanha arrested for MCC Bank loan fraud

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Comment on this article

Francis Pinto, Kinnigoli/Bejai

Ransom Saldanha, Mangalore

NN, NN

NN, NN

Ransom Saldanha, Mangalore

NN, NN

Ransom Saldanha, Mangalore

AMAR NATHAL, MANGALORE

NN, NN

Rudolf Rodrigues, Mumbai

Ransom Saldanha, Mangalore

J.F.D SOUZA, Attavar, Mangalore

Ransom Saldanha, Mangalore

Rudolf Rodrigues, Mumbai

Indian, Mangalore

Eric Coelho, Mangalore

YOGI THUNTA, MANGALURU - NEAR PUMPWELL CIRCLE

Rudolf Rodrigues, Mumbai

Prabhu, Karkala

John, Manglore/Kuwait

Rudolf Rodrigues, Mumbai

Eric Coelho, Mangalore

Rudolf Rodrigues, Mumbai

Indian, Mangalore

Indian, Mangalore

Vincent Rodrigues, Katapadi/Bangaluru

Sanjay Serrao, Mangalore

Ajay Kumar, Karkala

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Title: Mangaluru: Builder John Sylvester Saldanha arrested for MCC Bank loan fraud

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