VIJAYAWADA: A deputy manager of State Bank of India (SBI) was arrested for diverting Krishna District Grandhalaya Samstha (KDGS) funds to the tune of Rs 2.6 crore to various accounts and later to his own account at the same branch. On Monday, police took into custody the accused, M Vamsi Krishna Murthy, deputy manager at the bank’s main branch in Machilipatnam.
The issue came to light two weeks ago when the KDGS officials approached the bank after noticing delay in depositing the cheques it received from different sources in the bank account. Following their request, the intelligence wing of the branch conducted an internal audit and found that out of 31 cheques issued in the name of KDGS, only 25 were cleared and six for Rs 2.6 crore were diverted to other bank accounts.
On May 9, SBI officials approached the Chilakapapudi police officials after they failed to recover the amount from the accused Murthy and others. Following a complaint from the SBI’s central investigation wing, the Machilipatnam police conducted a thorough investigation into the case and found that Mandali Vamsi Krishna Murthy was the brain behind transferring Rs 2.6 crore from the account of the Grandhalaya Samstha to the accounts of some customers known to him. Later, he transferred the same to his own account.
His role in diverting the KDGS funds was confirmed when the police verified the bank transactions whereby Rs 2.6 crore was deposited in 10 accounts through mobile banking. Also, police initiated legal action and arrested Murthy and those who received the money. “Murthy admitted that the six cheques deposited by the KDGS were cleared and credited to the accounts of persons known to him. He was produced in court and sent to judicial remand,” said Krishna district SP Sarvasresth Tripathi.
Anatomy of the crime
In the first of May, KDGS officials approached SBI after noticing delay in clearance of cheques
SBI officials found 6 cheques worth L2.6 crore
of KDGS funds diverted to other accounts
On May 9, officials approached police
On May 10, Machilipatnam police took the
accused manager under custody for questioning