Kundapur: Couple allegedly manipulates audit reports to avail bank loan, case filed


Daijiworld Media Network - Kundapur (MS)

Kundapur, Oct 18: A case has been filed by the manager of Karnataka Bank, Siddapur branch against a couple for allegedly cheating the bank with false records and audit report.

The accused in the case are Raghavendra Hemmanna, son of Damodar Hemmanna of Gajanana Cashew industries, Siddapur, Kundapur and his wife Ashakiran Hemmanna.

In his complaint, Srinivas Shenoy, branch manager of Karnataka Bank, stated that the couple had opened Hems Foods private limited in Shankaranarayana, Kundapur on June 13, 2015 and had taken loan from the bank.


Representational iimage

The accused had shown the annual turnover of the company as over Rs 10.90 crore in its audit report that was submitted to the bank. Considering the audit report, the bank gave overdraft facility of Rs 3.75 crore, Rs 2.7 crore towards purchase of machinery and Rs 25 lac for the construction of new building on various dates, the complaint stated.

Later, the accused, it is alleged, did not pay the loan instalments properly to the bank. When the bank officials checked the website of the company they found that the annual turnover of the company was mentioned as just over Rs 15 lac. The bank has accused the couple of preparing two different audit reports in the name of the same company with the intention of cheating the bank.

The bank manager has complained that the company owned by the accused couple owes Rs 6,74,77,414 to the bank as of July 1, 2020. It is alleged that the accused have shown the stock of the company as Rs 5.27 crore. But when the bank officials checked the godown, none of the products manufactured by the company were kept in stock.

A case under sl no 91/2020 and column 420,465,468 and 34 of IPC has been registered in Shankaranarayana police station as per the complaint filed by the branch manager of Karnataka Bank, Siddapur branch.

 

 

  

Comment on this article

  • Bharath jain, Mangalore

    Mon, Oct 19 2020

    Nothing but negligence of the officials concerned to this case

    DisAgree Agree [2] Reply Report Abuse

  • kusuma kumari gunji, nellore kodyadka

    Mon, Oct 19 2020

    There are fraudsters nowadays who will do anything for money. These are fraudsters whom the bank managers should be very vigilent about. I am of the opinion that fraudsters are destroying our banking sector. They should be punished so that our banking system does not collapse and our countrys economy does not fall from grace

    DisAgree Agree [1] Reply Report Abuse

  • k b r, Mangala Uru

    Sun, Oct 18 2020

    bank Manager is negligent... they should have checked their dealings / turnover etc. etc. etc. for the past years... just because of anone audit report, OD and loan totalling more than 7 crores...? they are doing verification through audit report and website?.... did they check the tax records of the firm and owners... did they do spot of inspection of premises and assess their worth... turnover of 10 crores claimed by the borrower... was it verified ... was there verification of bank account, other assets of the firm... machinery loan... was it disbursed to the machinery supplier or to the borrowers directly...

    this seems FRAUD by the borrower and the Bank Manager against the Bank...

    DisAgree Agree [9] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Oct 18 2020

    Sadly these Frauds have started in our Districts ...

    DisAgree [4] Agree [14] Reply Report Abuse

  • Vinod Kumar, Visakhapatnam

    Sun, Oct 18 2020

    Audit report given by auditor should be punishable due to fraudulent financial reporting of financial statements.and bank should have been gone for physical verification of stock as on the date of giving loan. The company should be punishable with fine which shall not be less than bankloan amount due to manipulation of financial statements.

    DisAgree Agree [10] Reply Report Abuse

  • Monty Dotor, Mangalore

    Sun, Oct 18 2020

    Case should also be filed against the auditor.

    DisAgree Agree [25] Reply Report Abuse

  • CA girishkk, M'lore/dxb

    Sun, Oct 18 2020

    Absolutely...,why the manager exclude the auditor from his petition as party actively participated in the crime/cheating...,

    All are b'coz of, DEMONitisation effect..., Hindustani's become ethically corrupt also....,jokers are still on high...

    DisAgree [6] Agree [11] Reply Report Abuse

  • Rathan, Mangalore

    Sun, Oct 18 2020

    Ca
    Big joke is ppl like you connect this cheating incident to demonitization. The company started before 2015 and demonitization was announced in 2016 Nov
    Now it has become a fashion to link business fraud /cheating to demonitization

    DisAgree [8] Agree [10] Reply Report Abuse

  • Shan, Udupi

    Sun, Oct 18 2020

    Late prime minister born during British time than why they have treat him as national hero and celebrate his death or birthdays.

    DisAgree Agree [1] Report Abuse

  • Manjunath, Brahmavar

    Mon, Oct 19 2020

    Read the news again.
    The audit report was forged.
    The CA had no hands in this.
    The couple forged the original audit report so they can get loan and dupe the bank.

    The fault lies with bank and bank auditors for-
    -Not checking recent bank statements when availing loan.
    -Physical inspection of premises of borrower (at time of availing loan and periodic)
    -Just checking MCA website also would have been enough

    DisAgree Agree Reply Report Abuse

  • Roshan Rodrigues, Mangalore

    Sun, Oct 18 2020

    Yatha Raja Tatha Praja

    Jai ho

    DisAgree [7] Agree [30] Reply Report Abuse

  • vishal, Mangalore

    Sun, Oct 18 2020

    Follow Mallya s. step by promising to bank that money will be return in every year.

    DisAgree [2] Agree [27] Reply Report Abuse


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Title : Kundapur: Couple allegedly manipulates audit reports to avail bank loan, case filed


 
 
 
 

 
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