CBI investigates multi-crore money transfer case involving Karnataka state-run corporation

The Central Bureau of Investigation (CBI) has initiated legal proceedings against bank officials and government servants in connection with the misappropriation of government funds from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation. In this alarming money transfer case, a staggering Rs 93 crore was siphoned off within a single day.

The investigation was triggered by a complaint lodged by the Union Bank of India. The Banking Securities Fraud unit of the CBI in Bengaluru swiftly acted upon this complaint, leading to the booking of several individuals.

Among those implicated are Suchismita Raul, the former head of the MG Road branch of the bank, Deepa D, the former deputy branch head of the same branch, and V Krishnamurthy, who held a position in the credit office of the branch. Additionally, the CBI has named unknown private persons and unknown public servants as part of the investigation.

Suspension of accused officials

As a consequence of these serious allegations, the bank has taken decisive action by suspending all three accused officials. The complaint filed by the bank’s deputy general manager and regional head of Bengaluru east reveals that a staggering Rs 89.63 crore of public funds was fraudulently misappropriated. While Rs 5 crore has been recovered, an alarming Rs 84.63 crore remains unaccounted for, as reported by The Indian Express.

The bank’s investigation further uncovered disturbing details. According to their findings, the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation had not received any cheque book, passbook, or statements of accounts related to these transactions. Moreover, the transfers from accounts were unauthorized, and the signatures, seals, and letterheads used in these transactions were all fraudulent.

The beneficiaries of these illicit transactions remain unknown, and the bank asserts that it never issued any letter or advice authorizing the transfer of funds to these parties. The gravity of the situation is underscored by the legal charges brought against the accused. They face charges under sections 120B (criminal conspiracy), 409 (criminal breach of trust by public servants, bankers, etc.), 420 (cheating), 467 (forgery), and 468 ((forgery for the purpose of cheating)) of the Indian Penal Code (IPC), as well as Sections 13(2) (criminal misconduct) and 13(1)(a) (public servant who fraudulently misappropriates) of the Prevention of Corruption Act.

The shocking misappropriation came to light following the tragic death of P Chandrashekaran, an individual involved in auditing. In a six-page death note, he meticulously detailed the fraudulent activities and named those responsible. Subsequently, the Karnataka government established a Special Investigation Team (SIT), leading to the arrest of the former managing director of the corporation, J J Padmanabh, and the accounts officer, Parashuram G Durugannavar.

In a recent development, the SIT apprehended Satyanarayana, the chairman of the First Finance Credit Co-Operative Society Limited from Hyderabad. Authorities suspect that Satyanarayana played a significant role in creating fictitious accounts as part of this elaborate scheme.

Amidst the unfolding investigation, Home Minister G Parameshwara clarified that the state government did not refer the case to the CBI. Instead, the Central agency took action based on the bank’s complaint. Meanwhile, allegations have surfaced implicating Youth Affairs, Sports, and Scheduled Tribes Welfare Minister B Nagendra in the fraud. The minister vehemently denies any involvement, asserting that he has never instructed anyone to transfer money to any account. The case continues to unravel, exposing the depths of corruption and financial malfeasance within the system.

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