Rs 1,400-cr Guru Raghavendra Bank fraud: 43 depositors die amid covid without getting money

News Network
June 5, 2021

Bengaluru, June 5: At least 43 of around 35,000 depositors that are struggling to get their hard-earned money back from the Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN) have passed away in last one and half years. 

In January 2020, the Reserve Bank of India, had invoked Section 35 A of the Banking Regulation Act, 1949 along with Section 56 of the Banking Regulation Act, after a scam worth Rs 1,400 crore had come to light. 

According to official sources, at least 43 depositors died since then without getting their money back. While some of them died due to covid-19, some others due to other reasons. 

The RBI had also imposed a withdrawal limit of Rs 35,000 citing the bank’s bad loans. The ceiling was raised to Rs 1 lakh later.

Satish Karanth, a mechanical engineer and resident of Kathriguppe, lost his 56-yearold wife Savithri Karanth in March due to breathing issues. “The bank assured good interest rates. We trusted the bank as it was run by our community people. We invested Rs 1 crore, including my mother’s Rs 20 lakh. Now, she despairs every day over the lost money and I don’t know how to console her,” he said.

Vijay Gururaj, a Nagarbhavi resident, said his mother Gayathri Gururaja had deposited Rs 6 lakh. “She was dependent on the interest money for her medical expenses. She was not happy to take money from us. After her deposit was stuck, she became depressed. On March 18, while heading to a hospital, she met with a road accident and died. She did not find peace in her death but was worried about losing money,” said Vijay, an accountant.

Online protest

Hit by Covid-19, the depositors have called for an online protest. It will be organised on Facebook Live — https:// www.facebook.com/SGRSBNDepositors/ — at 8pm on June 6.

Harish Venkataramaiah, a depositor leading the protest, said there has been no development in the last one-andhalf-year with regard to the money. 

“Initially, the heads promised to revive the bank but later an administrator was appointed by the Registrar of Cooperative Societies in Karnataka but that was also of no use. People who defaulted on their loans have been roaming free and the poor depositors are paying a heavy price for it,” he rued.

The bank’s case of irregularities was handed over to the Criminal Investigation Department (CID), which is yet to file a chargesheet. A police official said the CID had collected data of the victims but later Covid-19 situation slowed down the probe.

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News Network
January 7,2025

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Mangaluru: A tragic road accident claimed the life of a young medical store owner on Monday, January 6, near Tiblapadavu, Natekallu, located on the outskirts of the city.

The victim, identified as 25-year-old Ausaf, was the proprietor of Hajira Medicals and the son of Jaleel, a resident of Derlakatte. 

The unfortunate incident unfolded as Ausaf was riding his bike from Derlakatte toward Tiblapadavu. Upon approaching a divider near Tiblapadavu, a lorry made a sudden turn, resulting in a collision between the motorbike and the rear of the lorry. Ausaf succumbed to his injuries on the spot.

Having completed his education a few years ago, Ausaf had taken up the responsibility of managing Hajira Medicals at Derlakatte Junction. He was well-known in his community for his dedication and service.

Authorities at the Mangaluru South Traffic Police Station have registered a case, and CCTV footage capturing the incident is under review. The tragic loss has left the local community in shock, mourning the untimely demise of a promising young entrepreneur. 

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News Network
January 9,2025

Mangaluru: In a significant development, Mescom has proposed a phased electricity tariff hike starting with Rs 0.70 per unit for the fiscal year 2025-26. The proposal has been submitted to the Karnataka Electricity Regulatory Commission (KERC) for approval, signaling a potential increase in electricity costs for consumers.

Mescom emphasized that the current tariff structure is insufficient to meet operational expenses and manage revenue effectively. To address this, the company has invited public objections to the proposed hike.

Currently, the electricity supply cost is Rs 9.23 per unit, while the consumer tariff stands at Rs 8.53 per unit, leading to a shortfall of Rs 0.70 per unit. For the financial year 2023-24, Mescom reported revenue of Rs 5,924.73 crore against an expenditure of Rs 6,310.39 crore, resulting in a deficit of Rs 367.66 crore. For the 2025-26 fiscal year, projected revenue is Rs 5,850.81 crore, with an actual requirement of Rs 5,961.63 crore, creating a deficit of Rs 110.82 crore.

In a first, Mescom has submitted a multi-year tariff revision proposal to KERC. The plan outlines a hike of Rs 0.70 per unit for 2025-26, followed by Rs 0.37 per unit for 2026-27 and Rs 0.54 per unit for 2027-28.

"An increase in electricity tariff is inevitable," stated Jayakumar R, Managing Director of Mescom. "Mescom has submitted a proposal in this regard to KERC."

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News Network
January 15,2025

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In a no-holds-barred attack on RSS chief Mohan Bhagwat for his remark that India got "true independence" after the Ram Temple in Ayodhya was consecrated, Congress leader Rahul Gandhi today said the comment amounted to "treason" and that Mr Bhagwat would be arrested and tried if he was in any other country.

Mr Gandhi was addressing an event to mark the inauguration of the new Congress headquarters in Delhi. "We are getting a new headquarters at a very particular time. I think it's quite symbolic that yesterday, the chief of the RSS said that India never achieved Independence in 1947. He said true Independence in India was achieved when the Ram Mandir was built. He says that the Constitution was not the symbol of our freedom."

"Mohan Bhagwat has the audacity to inform the nation every two or three days what he thinks about the Independence movement, what he thinks about the Constitution. What he has said yesterday is treason because it is stating that the Constitution is invalid, it is stating that everything (done) to fight against the British was invalid and he has the audacity to say this publicly," Mr Gandhi said, adding, "in any other country, he would be arrested and tried".

"To say that India did not get Independence in 1947 is an insult to every single Indian and it's about time we stop listening to this nonsense that these people think they can just keep parroting out and shouting and screaming," the Leader of the Opposition in Lok Sabha said.

Mr Bhagwat was in Indore on Monday to present the National Devi Ahilya award to Champat Rai, general secretary of Shri Ram Janmabhoomi Teerth Kshetra Trust. Addressing a gathering there, he said the day of the consecration of Ram Temple in Ayodhya should be celebrated as "Pratishtha Dwadashi" as it marks the "true independence" of Bharat. 

"India, which faced enemy attacks for centuries, witnessed its true independence that day. We had independence, but it had not been established. India got political independence on August 15, 1947, we also brought a Constitution but the country did not run in its spirit. How can we accept that dreams have been fulfilled and pain alleviated? Our swa (self) is Ram, Krishna and Shiva. Do they belong only to those who worship them? No. Ram connects people from north to south, Krishna from east to west and Shiva is in every particle of Bharat," he said.

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