In a decisive move to bring justice to thousands of depositors affected by a massive fraud at the Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN), the Karnataka government has ordered a CBI inquiry into the scam.
Chief Minister Siddaramaiah, expressing empathy with the distraught depositors, stated, “Numerous individuals entrusted their life savings to this bank, harboring aspirations of marriage, homeownership, and other dreams. The bank’s fraudulent practices have left these depositors deeply concerned about their future. Even during my tenure as Opposition leader, I raised my voice against the bank’s wrongdoing and demanded a CBI investigation to ensure justice for the depositors. Witnessing the frustration and anguish of those who lost their hard-earned money has been heartbreaking. Therefore, to guarantee fairness for all, we have decided to hand over the investigation to the CBI.”
In 2020, the Reserve Bank of India (RBI) imposed stringent withdrawal restrictions on the SGRSBN, raising suspicions of financial irregularities. Subsequent investigations revealed a shocking misappropriation of over Rs 2,500 crore by the bank’s management. The Enforcement Directorate (ED), in its ongoing probe into the alleged scam, has attached assets worth Rs 159 crore.
While a majority of the 45,000 depositors have received the Rs 5 lakh insurance amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC), over 15,000 depositors with deposits exceeding Rs 6 lakh are yet to receive the full relief amount.
In a significant development, the ED arrested a key beneficiary of the alleged scam in February this year. According to the ED, the accused, Rajesh V R, colluded with the bank’s management to siphon off massive funds. An RBI inspection report revealed that he availed of loans worth Rs 40.4 crore from the bank but has defaulted on repayments.
The CBI inquiry is expected to shed light on the extent of the scam and bring the perpetrators to justice, restoring the faith of depositors in the banking system.
