SGRSBN 'Scam': CBI Not Probing K'taka Bank Case, RTI Reveals; Contradicts Siddaramaiah's Statements

The RTI revelation contradicts earlier statements made by Karnataka Chief Minister Siddaramaiah who had previously asserted that the CBI was overseeing the investigation into SGRSBN 'scam'.

An Right to Information (RTI) inquiry has disclosed that the Central Bureau of Investigation (CBI) is not currently investigating the scandal involving the Bengaluru-based Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN) cooperative bank, as reported by India Today. This revelation contradicts earlier statements made by Karnataka Chief Minister Siddaramaiah, who had previously asserted that the CBI was overseeing the investigation.

In December 2023, Chief Minister Siddaramaiah had announced that the CBI would be entrusted with probing financial irregularities in three cooperative banks in Karnataka, including the Guru Raghavendra Cooperative Bank, Vasishtha Bank and Guru Sovereign Bank. He made this announcement on social media, emphasising the government's commitment to addressing the financial misconduct that had adversely affected thousands of depositors, according to a report on NDTV.

SGRSBN Bank Scam

In 2020, SGRSBN scam came to public attention when the Reserve Bank of India (RBI) imposed withdrawal restrictions on the bank, exposing financial mismanagement amounting to approximately Rs 2,500 crore. The scandal has left more than 45,000 depositors in a precarious situation. 

While some have received compensation through the Deposit Insurance and Credit Guarantee Corporation, around 15,000 depositors, who had deposits exceeding Rs 6 lakh, have not yet been fully reimbursed.

Many of these depositors had invested their life savings with the hope of securing their future, only to find themselves in financial limbo due to the bank's fraudulent activities.

This disclosure adds another layer of complexity to the already controversial situation surrounding Chief Minister Siddaramaiah, particularly in light of the ongoing Mysore Urban Development Authority (MUDA) scam. Recently, the Karnataka High Court provided temporary relief to the Chief Minister by postponing legal proceedings related to the MUDA case until August 29.

After the court’s decision, Siddaramaiah expressed his gratitude via a post on X (formerly Twitter).