Bank assistant manager, businessman convicted of cheating SBM of ₹2.70 crore

Bank assistant manager, businessman convicted of cheating SBM of ₹2.70 crore

The CBI Special Court in Dharwad has passed an order convicting a bank assistant manager and a businessman of cheating State Bank of Mysore (SBM) of ₹2.70 crore and sentencing them to one-year rigorous imprisonment. It has imposed a total fine of ₹1.20 lakh on them.

The case dates back to 2012.

The names of those convicted were given as B.S. Gururaj Rao, who worked as assistant manager at SBM, Ilkal branch, and Praveen Katwa, proprietor of Ramakrishna Exports, Ilkal.

The CBI and Anti Corruption Bureau, Bengaluru, filed a charge-sheet before the CBI Special Court based on a complaint from Chief Vigilance Officer of State Bank of Mysore Thomas Mathew.

In his complaint, Mr. Mathew said that Gururaj Rao, while working as assistant manager at Ilkal branch, connived with E. Channaveerappa, proprietor of Om Shree Entreprises, Gangavati, Nagaraj Motilalsa Raibagi, partner of Aditi Enterprises and Aditi Industries, Ilkal, and Praveen Katwa, proprietor of Ramakrishna Exports, Ilkal, in defrauding the bank.

It was said that Gururaj Rao deliberately did not credit DDs (demand drafts) and banker cheques tendered by the Mines and Geology Department, HESCOM and other government departments and instead credited them to the internal account of the bank, from where the funds were transferred to the bank accounts of E. Channaveerappa, Nagaraj Raibagi and Praveen Katwa.

The charge-sheet said that the accused swindled the bank of ₹2.70 crore causing financial loss to the financial institution.

The incident came to light when the Vigilance Wing of HESCOM and Mines and Geology Department, Ilkal, raised doubts over DDs issued by them towards royalty payment and electricity bills not being credited to their account, with the branch manager of State Bank of Mysore.

In the ensuing internal inquiry by the bank, it was revealed that Gururaj Rao committed fraud to help borrowers.

After hearing the matter, Special Judge for CBI cases N. Subramanya convicted the accused under Sections 120-3, 420, 467, 468, 471 and 477-A of Indian Penal Code and Section 13(1)(d) read with 13(2) of Prevention of Corruption Act. The order was passed on October 5.

Senior public prosecutor Shivananda Perla argued for the CBI.

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