Bengaluru Court orders Kannada news channel to pay ₹1 lakh for defaming Karnataka Bank

A Court in Bengaluru has directed Kannada news channel BTV News to pay ₹1 lakh in damages to Karnataka Bank Limited for broadcasting defamatory statements about the bank following the resignation of its Managing Director and Chief Executive Officer in June 2025. [Karnataka Bank Vs BTV]

Additional City Civil and Sessions Judge RY Shashidhara also directed the channel to broadcast an apology to Karnataka Bank and permanently restrained it from publishing defamatory statements concerning the bank and its officials in relation to the dispute.

In the judgment delivered on October 1, the Court held that the channel had broadcast the allegations without verifying information from credible sources.

"The defendant has not followed norms of journalistic conduct issued by press council of India. The defendant has not followed principles and ethics while publishing statement against plaintiff bank," the Court added.

The dispute arose following the resignation of Karnataka Bank's Managing Director and CEO Srikrishnan Hari Hara Sarma on June 29, 2025.

According to the bank, an audit for the financial year 2024-25 revealed that Sarma had incurred expenditure amounting to ₹1.16 crore towards consultants and other revenue expenses beyond his delegated powers.

The bank's board subsequently considered the audit findings and recommended recovery of the amount concerned. These developments were communicated to the National Stock Exchange on May 14, 2025.

Sarma subsequently resigned, citing personal reasons and his intention to relocate to Mumbai.

BTV News allegedly broadcast sensational and defamatory claims about Karnataka Bank's financial stability, internal administration and the safety of customer deposits without verifying the circumstances surrounding the resignation.

Among the statements attributed to the channel were warnings that depositors' money could be siphoned off and that customers should exercise caution before opening accounts with the bank.

The channel also allegedly suggested that there were financial irregularities and disputes among the bank's directors.

In its suit before the Court, Karnataka Bank said that these broadcasts created panic among investors and depositors, forcing its directors to respond to numerous enquiries.

The bank claimed that its share price, which stood around ₹207 at the close of trading on June 26, 2025, had fallen sharply following the broadcasts.

The bank instituted a defamation suit on June 30, 2025, seeking ₹1 lakh in damages, a public apology and a permanent injunction against further defamatory publications.

BTV News did not appear before the Court despite service of summons, and the proceedings continued ex parte.

The Court examined the testimony of the bank's Chief Business Officer, Chandrashekar, along with its audited financial statements, the Managing Director's resignation letter, photographs of the television broadcasts and a compact disc containing the relevant material.

On examining the evidence, the Court concluded that the channel had published defamatory allegations without credible information from the bank's management.

The Court held that the broadcasts had damaged the bank's reputation and business interests, making the channel liable for damages.

It accordingly decreed the suit with costs.

[Read Judgment]