“Dakshina Kannada: From Banking Cradle to Bank Fraud Hub

9:40 PM, Friday, November 10th, 2023

Mangaluru : The Deputy Commissioner/District Magistrate Court in DK Mangaluru has become a breeding ground for bank frauds, with orders being issued without notice or proper proceedings and even without careful scrutiny of supporting documents in applications filed by banks under Sec. 14 of the SARFAESI Act. Additionally, the police have filed B reports despite substantial evidence, which emboldens such fraudulent activities.

With the help of PUCL DK Mangaluru, numerous FIRs (FIR no.116 of 2019, FIR no.146 of 2019, FIR no.66 of 2021, FIR no.24 of 2022, and FIR no.47 of 2022) have been registered in connection with bank frauds involving bank officials collaborating with habitual fraudsters.

Banks and financial institutions file applications before the Deputy Commissioner, District Magistrate Court, Dakshina Kannada, under Sec. 14 of the SARFAESI Act to take possession of properties. Shockingly, these applications are often approved without notifying borrowers or defendants and without proper proceedings, relying on dubious documentation.

Several instances involve bank officials filing inaccurate applications with the help of case workers and other officials, misleading the Deputy Commissioner/District Magistrate, leading to orders that are executed with the assistance of Tahsildar and the police on unsuspecting property owners who have never taken loans or acted as guarantors.

The police have been slow to respond to bank frauds, as evidenced by FIRs filed only after fraudulent notices were issued and police allowing banks to file applications before the DC Court. These notices often contain errors in names, addresses, and lack address proof.

In one case, despite the DC Court sending a notice to the bank regarding a fraudulent land conversion, the bank still received a favourable order. Additionally, false sale deeds and dubious loan applications were accepted, resulting in the auction and economic distress for property owners.

Strangely in another case manager of a nationalised bank, had given loan to a company based on surety of a sale deed in the name of a non existent person submitted by its proprietor. Loan was given by bank manager, knowing fully well, that very sale deed before bank, reveals that same company to which loan is going to be given has an current account in another nationalised bank in another name as its proprietor.

In another case involved a bank manager obtaining a loan on an individual’s property, depositing the funds into a benami account, and then getting dismissed from service. Funds worth several crores were found in the benami account. Charge sheet has been filed naming the bank manager and the benami to have been involved in this case.

Numerous complaints have been made to the Deputy Commissioner about these illegalities and fraudulent activities in the DC court, but no action has been taken.

Furthermore, the police’s bias is evident when they file B reports citing a lack of evidence despite abundant primary evidence in each case, contributing to the rise in bank frauds in India,

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