"After considering the facts of each case and the individual bank's reply, as also, personal submissions etc., by some of the banks before its Committee of Executive Directors, the Reserve Bank came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty as determined above," RBI said.
The banks collectively had a total exposure of around Rs 4,000 crore.
ICICI Bank, the second largest lender of the country, has been slapped with a fine of Rs 40 lakh, the highest penalty in this case. The remaining 11 banks have been fined between Rs 5 lakh and Rs 15 lakh.
"RBI had been communicating with the banks for a while now, seeking clarity on the know your customer (KYC) procedure and due-diligence with regard to lending to DCHL. The central bank had been trying to ascertain what was lax on the bank's part in this case," said a senior official from a bank fined by RBI.
"This action is not intended to pronounce upon the validity of any transaction or agreement entered into between the bank concerned and the borrower," the notification added.
A forensic audit conducted by Canara Bank had revealed owners of DCHL had taken loans by mortgaging the same property with multiple lenders. This was conducted after the media firm had started defaulting on the loans to the lenders.
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