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Karnataka Bank declares Rs.160-Cr loan to Reliance Home, Reliance Commercial as fraud

PTI  

Private sector lender Karnataka Bank has declared accounts of Reliance Home Finance and Reliance Commercial Finance a fraud, with combined loan outstandings of over INR 160 crore to the lender. The bank has reported to the Reserve Bank regarding frauds in the credit facilities extended earlier to two listed companies — Reliance Home Finance with loan outstanding of INR 21.94 crore and Reliance Commercial Finance INR 138.41 crore — as fraud. With regard to loan to Reliance Home Finance, 24 lenders were part of a multiple banking arrangement, while in case of Reliance Commercial Finance 22 lenders were part of the loan arrangement.