Bengaluru Court Orders BTV News To Pay ₹1 Lakh Damages For Defamatory Broadcasts Against Karnataka Bank
A Bengaluru civil court has ordered BTV News Channel to pay ₹1 lakh in damages to Karnataka Bank Limited for broadcasting defamatory statements, including warnings that depositors' money was unsafe and allegations of financial irregularities and discord within the bank's board of directors.
XXIX Additional City Civil and Sessions Judge R.Y. Shashidhara also directed the channel to publish an apology to the bank and permanently restrained it from publishing defamatory material concerning the bank, its board of directors, employees and customers in relation to the dispute.
The court held that BTV News had failed to follow journalistic ethics while reporting on the bank.
“I am of the opinion that 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 observed.
The court was hearing a defamation suit filed by Karnataka Bank seeking ₹1 lakh in damages, an apology and a permanent injunction against defamatory publications concerning the bank, its board, employees and customers in relation to the dispute.
The dispute arose after an audit of the bank for the financial year 2024-25. The judgment records that the audit found that the managing director had spent ₹1.16 crore on consultants and other revenue expenditure beyond his delegated powers. Recovery of the amount was suggested, and the matter was communicated to the National Stock Exchange of India by letter dated May 14, 2025.
The bank's managing director and CEO submitted his resignation citing personal reasons, including his intention to relocate to Mumbai. The board accepted the resignation on June 29, 2025, and permitted him to leave the post on July 15, 2025.
Karnataka Bank alleged that BTV News broadcast reports about the resignation without verifying the reasons with the bank's management. It claimed that the channel made defamatory remarks about the board, the CEO and senior officials, raising concerns about the bank's financial affairs and the safety of depositors' money.
Among the statements attributed to the channel in the judgment were warnings to the public to be careful before depositing money with the bank and allegations that depositors' money could be siphoned off. The broadcasts also alleged financial irregularities and disagreements over unapproved expenditure.
The bank contended that the broadcasts caused panic among depositors and investors, prompting its directors to respond to calls seeking clarification. It further claimed that its share price fell from around ₹207 to ₹15 within an hour of the opening of trading following the broadcasts. The judgment records this as the bank's claim; the share-price movement was not independently established in the court's findings.
BTV News did not appear before the court despite service of summons and was proceeded against ex parte.
The court examined the testimony of Karnataka Bank's Chief Business Officer, Chandrashekar, along with the documentary evidence submitted by the bank. This included the audit report, the CEO's resignation letter, eight photographs of the channel's broadcasts and a CD containing related material.
After examining the evidence, the court found that BTV News had published defamatory statements about the bank, its board, the CEO and senior officials without a credible source of information from the bank's management.
The court also found that the channel's scrolling news reports had caused damage to the bank's business and that the statements were published recklessly, with a malafide intention to harm its reputation and image.
Referring to the CEO's resignation letter, the court noted that it cited personal reasons, including his intention to relocate to Mumbai. It held that BTV News had published defamatory statements without verifying the reasons for his resignation.
Holding that Karnataka Bank had established its case, the court decreed the suit with costs and directed BTV News to pay ₹1 lakh in damages for defamation. It also ordered the channel to publish a complete apology to the bank on its news channel.
The court permanently restrained BTV News from holding press conferences or publishing, printing, circulating or distributing statements through social media or its news channel that are defamatory of Karnataka Bank, its board of directors, employees and customers in relation to the subject matter of the suit.
For Plaintiff: Advocate APB