Sri Guru Raghavendra Sahakara Bank Case: Depositors Meet Karnataka Deputy CM, Seek SIT Probe

The President of one of the depositor's Associations Sankara Guha Dwarakanath expressed concern over the delay in CBI's investigation despite Karnataka handing over the probe more than 5-6 months ago.

In early 2020, a money laundering case surfaced involving alleged misappropriation of public funds exceeding Rs 1000 crore.

Source : X/@ANI

The depositors of Sri Guru Raghavendra Sahakara Bank met Karnataka Deputy CM DK Shivakumar concerning the alleged bank scam at his residence in Bengaluru on Thursday. During the meeting, the depositors allegedly requested the Deputy CM to commence a special investigation into the issue.

On the visit, President of one of the depositor's Associations Dr Sankara Guha Dwarakanath said, "This morning all the depositors met the Karnataka Dy CM DK Shivakumar and thanked him for taking the decision right in front of Priyanka Gandhi yesterday to form a SIT in the wake of CBI not initiating the investigation."

#WATCH | Bengaluru, Karnataka: The depositors of Sri Guru Raghavendra Sahakara Bank(N) came to meet the Karnataka Deputy CM DK Shivakumar at his residence in relation to the Sri Guru Raghavendra Sahakara Bank (SGRC Bank) scam. The depositors also urged Dy CM to initiate a special… pic.twitter.com/Wa6rTsfcMD

— ANI (@ANI) April 25, 2024

He expressed concern over the delay in the CBI's investigation despite the Karnataka government handing over the probe more than 5-6 months ago, noting that no progress has been made, with no investigating officer even appointed yet.

 

"As soon as the elections are over, they will see how this can be handled, form an SIT and let the state government start an independent probe. A time-bound probe is what we are asking, these fraudsters have to be booked immediately and punished, this is our demand," he said.

Sri Guru Raghavendra Co-op Bank Scam

In early 2020, a money laundering case surfaced involving alleged misappropriation of public funds exceeding Rs 1000 crore. Following an FIR filed by the Bengaluru police, the Enforcement Directorate (ED) initiated a PMLA case in September of the same year. 

The ED accused bank officials of orchestrating fictitious loan accounts, funneling funds into these accounts and subsequently transferring the money to overdue loan accounts in a bid to artificially bolster the financial stability of the bank, a practice commonly known as ever-greening.

The case was filed after Bengaluru Police took cognisance of FIR specifically from the Banaswadi police station. The FIR was registered under multiple sections of the Indian Penal Code (IPC) and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004, against the accused individuals.