Highlighting the Reserve Bank of India’s (RBI) role in regulating banking functions and ensuring compliance, he said the apex bank has directed banks to refer fraud cases to the CBI to ensure impartial investigations, particularly those transcending state boundaries.
The court acknowledged Venkataramani’s argument, suggesting that the state should align with the bank’s decision to transfer the investigation to the CBI.
Advocate General Sashi Kiran Shetty requested two weeks to file objections to the petition.
The state government had constituted a special investigation team (SIT) headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID), to conduct the probe. The Corporation had filed an FIR against top Union Bank of India officials with the police, over embezzlement of money. Mumbai-headquartered Union Bank of India had also filed a complaint with the CBI in connection with embezzlement of money belonging to the Corporation involving its MG Road branch, following which the premier investigation agency had initiated a probe.
The illegal money transfer issue, involving Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, came to the fore, after its accounts superintendent, Chandrasekharan P, died by suicide on May 26, leaving behind a note.
The note revealed the unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account, and from that, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to “well-known” IT companies and a Hyderabad-based cooperative bank among others.
Following allegations against him in connection with the scam, Scheduled Tribes Welfare Minister B Nagendra tendered his resignation on June 6. Nagendra, who was arrested by the Enforcement Directorate on July 12, is currently under judicial custody in connection with the case.
