The scam had wider ramifications with the involvement of 12 banks in four states.
Hyderabad High Court
Hyderabad: Justice Challa Kodandaram of the Hyderabad HC directed the CBI on Tuesday to investigate the fraudulent transfer of funds of companies under liquidation from the SBH and other banks. The judge was hearing a petition by Allwyn Watches Ltd, represented by its official liquidator, regarding the disappearance of deposits worth Rs 9 crore from the SBH’s Malkajgiri branch.
CBI counsel P. Kesava Rao told the court that the scam had wider ramifications with the involvement of 12 banks in four states. He said the CBI had found a similar fraud had caused a loss of Rs 3.5 crore to the Bengaluru office of the Rajiv Gandhi Foundation. A part of the money had landed in the Hyderabad account of Goreshwar Cooperative Society.
He said that United Bank of India’s Khammam branch too witnessed a huge funds transfer scam involving the same modus operandi in which conmen used the RTGS route to transfer funds to multiple accounts. The judge told the CBI to start investigations without further loss of time and inform the court of the progress. In another court, Justice Raja Elango refused the anticipatory bail applications of K. Srikanth, branch manager of the United Bank of India at Khammam, M. Srinivasa Rao, Saikumar and two others.
Signatures were forged to take cash:
It has now come to light that the frauds used forged documents and signatures to withdraw Rs 14 crore from the Housing department’s account at SBH. Added to the Rs 18 crore of the Singapore Township Ghatkesar branch, it has now been found that funds were also siphoned off from the Hima-yatnagar branch too, taking the total embezzlement to Rs 32 crore.
The AP state government has ordered a CID enquiry while the SBH had sought a CBI enquiry. The bureau has already started investigation. According to Housing department officials, the department recently shifted the funds from Andhra Bank to SBH Himayatnagar and Singapore Township branches. AP Chief Minister Chandrababu Naidu had ordered a CID enquiry when Housing department officials brought the fraud to his notice. Meanwhile Housing department officials said that SBH officials have assured the state government to pay the Rs 32 crore that was withdrawn with forged documents.
Money went to mumbai, Rajkot firms:
Investigations found that the money of the official liquidator had been transferred to the accounts of companies based in Mumbai and Rajkot. Police issued an FIR based on the complaint by liquidator Arvind Shukla who alleged that K.V. Raman Rao, a former SBH employee and D. Neeraja Srinvias, manager of Malkajgiri SBH branch, were in the fraud.
A total of 9.86 crore was deposited in the SBH branch out of which Rs 8.45 crore was transferred using fake authorisation letters and by getting premature releases of fixed deposits.
Good Luck Enterprises at Crawford Market in Mumbai, Sunil Kumar, Radha Ramana Agarwal of Mumbai, Ravish Associates of Rajkot, Riya Enterprises of Lamington Road, Paidlite Trade of Mumbai, Akshi Indomet, Bayside Impex and Suresh Steel India of Mumbai are some of the companies and individuals identified, into whose accounts the swindled money was transferred. Key accused in the case, Damodaran of Chennai, is still absconding.
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( Source : deccan chronicle )
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