Billion Rupee Fraud by Issue of a Fake Paperwork: Karnataka Bank complaining against a couple in Kundapur

Udupi: A couple has defrauded Karnataka Bank by submitting a fake audit report. A bank manager has lodged a complaint against a cheating couple in Siddapur in Kundapur taluk in Udupi district, police started investigation.

Raghavendra Hemmanna, the owner of Gajanana Cashew Industries in Siddapur and his wife Ashakiran Hemmanna, started the Hems Foods Pvt Ltd. The company had submitted a fake audit report to the bank that the company was operating an annual turnover of Rs 10.90 crore. Believing this, the Karnataka bank,Siddapur branch had borrowed Rs 3.75 crore as overdraft, Rs 2.70 crore for the purchase of machinery and Rs 25 lakh for the construction of the new building.

However, the couple did not pay back the loan properly. Against this backdrop, the bank’s staff was asking for loan repayment. At the time of taking loan, the couple told the company had a net worth of Rs 5.27 crore. When the bank staff who believed this inspected the inventory room, there was no inventory. When actually the company’s website was checked, the company has an annual turnover of just Rs 15 lakh.

Srinivasa Shenoy, the coordinator of the Karnataka Bank’s Siddapur branch, has lodged a complaint with the Sankaranarayana police station alleging that the couple had defrauded the bank of Rs 6.74 crore. Police have started an investigation in the wake of the complaint.