The Anti-Corruption Bureau (ACB) of the Central Bureau of Investigation (CBI) sleuths on Tuesday arrested 11 bank officials, including two branch managers, from several pockets of the State for swindling around Rs 12 crore.
The arrested officials were expected to be produced before the special court for CBI cases on Wednesday. Karnataka Industrial Development Board (KIDB) opened two Fixed Deposits (FDs) worth Rs 12 Crore and Rs 13 crore respectively with the Punjab National Bank’s (PNB) Sangakiri branch on September 17, 2011. PNB branch manager Rajakrishnan allegedly colluded with State Bank of India’s Palayamkottai branch manager Laser Jayaprakash and several other officials to handle the FD of Rs 12 crore. Within 15 days of the deposit, the gang forged documents to show that KIDB transferred the funds to a specific account in SBI Palayamkottai branch. The request was processed as genuine by the PNB branch manager and the funds transferred to the said account.
Soon after the money was moved, the gang withdrew it and shared it among themselves. The incident came to light when KIDB asked the PNB Sangakiri branch to release the matured amount Rs 25 crore on September 7.
KIDB was then told that the FD was transferred to another account, as per its request.
KIDB officials lodged a complaint with the vigilance wing of PNB to retrieve the money, which was transferred without their knowledge through the collusion of bank officials.
The complaint was handed over to the CBI, which registered a case and arrested two branch managers and nine other bank officials from different pockets of Tamil Nadu, including Sangakiri and Palayamkottai.