A former manager of the State Bank of India (SBI), Shri Y. Kiran Babu, was sentenced to 4 years of rigorous imprisonment and fined Rs. 3.7 Lakhs in a bank fraud case. This decision was made by the Special Judge for CBI cases in Madurai.
The case began when the Central Bureau of Investigation (CBI) registered a complaint on December 31, 2018. The complaint accused Y. Kiran Babu, who was working as the branch manager at SBI Alangudi, District Pudukkottai in Tamil Nadu, of illegally transferring large sums of money into his wife’s bank accounts.
The fraud started in December 2016, when Kiran Babu began transferring funds in small amounts, making it harder to detect. To avoid suspicion, he took the money from the Branch General Ledger (BGL) account, a bank account used for internal transactions, and moved it to his wife’s accounts in different banks. He did this by splitting the total sum into small amounts and passing the money without affecting the official customer transactions or general accounts.
Through this method, Kiran Babu embezzled a total of Rs. 4.94 crore from the bank. This money was transferred into his wife’s various bank accounts.
The CBI conducted a thorough investigation into the matter and filed a formal chargesheet against Kiran Babu on September 24, 2019. The trial was held, and the court found him guilty of the charges. As a result, he was sentenced to 4 years in prison and ordered to pay a fine of Rs. 3.7 Lakhs. Click here to Read more CBI Cases related to Banks.
This case highlights the misuse of power by a bank employee and shows the importance of thorough checks to prevent such fraudulent activities in the banking sector.