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CBI launches probe into alleged Rs 5 crore fraud in Karnataka State Handicraft Development Corporation

CBI launches probe into alleged Rs 5 crore fraud in Karnataka State Handicraft Development Corporation

The CBI has registered the FIR on a complaint from the chief manager of SBI alleging that an assistant manager had opened a current account number -- 7828879815 -- of KSHDC, on its application, at Hesarghatta Road Branch

Central Bureau of Investigation Central Bureau of Investigation

The CBI has started investigation into alleged embezzlement of Rs 5 crore in Karnataka State Handicrafts Development Corporation (KSHDC) in connivance with an official of the State Bank of India, officials said Monday.

The CBI has registered the FIR on a complaint from the chief manager of SBI alleging that an assistant manager had opened a current account number -- 7828879815 -- of KSHDC, on its application, at Hesarghatta Road Branch.

The complaint alleged that Sateesh V Vambhashe, the then assistant manager at the bank, fraudulently opened one more account in the name of KSHDC 37830657832 under the same Customer Information File without any authorisation from the KSHDC to facilitate illegal transfer of funds.

On July 26, 2018, an inward remittance of Rs 5.01 crore came to the authentic KSHDC account from Canara Bank which was fraudulently transferred to the similar account created by Vambhashe, it alleged.

An amount of Rs 25 lakh was further transferred into a fixed deposit while balance was transferred in 12 transactions over a period of two months to accounts of Velohar Infra Pvt Ltd and Venture Cottage Industrial Trade Company based on purported cheques issued by KSHDC signed by their Assistant (Finance), it alleged.

The manager fraudulently issued a letter to KSHDC that fixed deposit receipt was verified and genuine and maturity amount of over Rs 5.37 crore would be paid back to them whereas in the core banking system of the bank the FD was issued for only Rs 25 lakh.

"Sateesh Vambhashe has allegedly committed falsification of accounts and colluded with KSHDC officials to unauthorisedly divert funds to the tune of Rs 4.76 crore by transferring through RTGS to different suspicious accounts," the FIR alleged.

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