Melbourne couple Mrs Shilpa Karandikar and Mr Shrikrishna Karandikar have pleaded guilty in the Moorabbin Magistrates Court following an ASIC investigation.

On 5 December 2018, Mr and Mrs Karandikar, of Clarinda, Victoria, separately pleaded guilty to offences against the National Consumer Credit Protection Act 2009 (National Credit Act) which include breaching an ASIC banning order.

Mrs Karandikar was convicted of engaging in credit activities contrary to a four-year ASIC banning order against her, and sentenced to a fine of $5,000 (out of a maximum fine of $17,000).

Mrs Karandikar admitted to having prepared home loan applications to the National Australia Bank for three customers between July 2014 and August 2015 through her husband’s former mortgage broking business, Siddhi Vinayak Finance Pty Ltd. The 2014 banning order was based on Mrs Karandikar having submitted false documents to secure a $243,000 home loan for a customer (14-173MR).

In sentencing Mrs Karandikar, Magistrate Crisp indicated it was a serious matter as Mrs Karandikar was engaging in the exact activities she had been banned from doing.

Mr Karandikar was convicted of giving false documents to the National Australia Bank, stating that he had completed customer identification forms in the presence of the home loan applicants, when he had not. Mr Karandikar was sentenced to a fine of $5,000 (out of a maximum fine of $17,000)

Mr and Mrs Karandikar were permanently banned from engaging in credit activities in December 2017 (17-434MR).

Background

The National Australia Bank identified the misconduct and reported it to ASIC.

The maximum fine and term of imprisonment for each charge is:

• s 82 of the National Credit Act (100 penalty units and/or two years imprisonment;
• s 160D of the National Credit Act (100 penalty units and/or two years imprisonment).

Prior to 1 July 2015, a penalty unit was $170. A bill to increase the penalty units for these types of offences, and others, is currently before Parliament.