Bengaluru Court Orders BTV News to Pay Rs 1 Lakh to Karnataka Bank in Defamation Case, Directs Channel to Apologise

A Bengaluru court has ordered 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, Srikrishnan Hari Hara Sarma, in June 2025. The court has also directed the channel to broadcast an apology to the bank and permanently restrained it from publishing defamatory statements against the bank and its officials in connection with the dispute.

Additional City Civil and Sessions Judge RY Shashidhara delivered the judgment on October 1, holding that the channel had broadcast allegations without verifying the information through credible sources. The court observed that BTV News had failed to follow the journalistic conduct guidelines issued by the Press Council of India and had not maintained the required standards and ethics while publishing statements against the bank.

The dispute arose after Sarma resigned as Karnataka Bank’s Managing Director and CEO on June 29, 2025. According to the bank, an audit for the financial year 2024-25 found that Sarma had incurred expenditure of ₹1.16 crore on consultants and other revenue expenses beyond his delegated powers. The bank’s board considered the audit findings and recommended recovering the amount. These developments were communicated to the National Stock Exchange on May 14, 2025. Sarma later resigned, citing personal reasons and his intention to relocate to Mumbai.

Following the resignation, BTV News allegedly broadcast sensational statements about Karnataka Bank’s financial stability, internal administration and the safety of customer deposits. The channel reportedly warned viewers that depositors’ money could be siphoned off and advised customers to exercise caution before opening accounts with the bank. It also allegedly made statements suggesting financial irregularities and disputes among the bank’s directors.

Karnataka Bank claimed that these broadcasts created panic among investors and depositors and damaged its reputation. The bank said its directors received numerous enquiries following the telecasts and had to respond to concerns raised by stakeholders. It also alleged that the broadcasts affected its share price, which stood at around ₹207 at the close of trading on June 26, 2025, before falling sharply following the broadcasts.

The bank filed a defamation suit on June 30, 2025, seeking ₹1 lakh in damages, a public apology and a permanent injunction to prevent further defamatory publications. BTV News did not appear before the court despite receiving summons, and the proceedings continued ex parte, meaning the case was heard in the absence of the channel’s representatives.

During the proceedings, the court examined the testimony of Karnataka Bank’s Chief Business Officer, Chandrashekar, along with the bank’s audited financial statements, Sarma’s resignation letter, photographs of the television broadcasts and a compact disc containing the relevant material.

After examining the evidence, the court concluded that BTV News had broadcast defamatory allegations without obtaining credible information from the bank’s management. It held that the broadcasts had harmed the bank’s reputation and business interests, making the channel liable to pay damages. In addition to the ₹1 lakh compensation, the court ordered the channel to broadcast an apology and prohibited it from publishing further defamatory statements concerning the bank and its officials in relation to the dispute.

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