CBI to probe multi-crore scam by three coop banks in Karnataka: CM Siddaramaiah

08:38 PM Dec 02, 2023 | PTI |

Bengaluru: The Central Bureau of Investigation will probe into the financial irregularities that took place in three cooperative banks in Karnataka, the state government said on Saturday.


In a post on ‘X’, Chief Minister Siddaramaiah said: ”It has been approved to hand over the scams of Guru Raghavendra Cooperative Bank, Vasishtha Bank and Guru Sovereign Bank to the CBI.”

Thousands of depositors had invested their lifetime savings in the bank, keeping their dreams like marriage of children, buying their own house as a basis for their retirement life. All of them are clueless about their future life due to bankers’ fraud, the chief minister said.

”Even when I was the Leader of the Opposition earlier, I was vocal inside and outside the House and participated in protests to get justice for the defrauded depositors. Even then, it was our insistence that this case should be investigated by CBI,” he stated.

”I have seen the frustration and suffering from those who have lost their deposit money. For this reason, I am handing over the case to the CBI with the intention of conducting a proper investigation and getting justice for all the victims,” he added.


The government order said, ”Government of Karnataka hereby accords sanction to the Central Bureau of Investigation, under Section (6) of Delhi Special Police Establishment Act,1946…”

The CBI will investigate the multi-crore fraud committed by the directors, chief executives and staff members of the management board of Sri Guru Raghavendra Co-operative Bank Limited, Bengaluru, Sri Vasista Credit Souharda Co-operative Limited, Bengaluru and Sri Guru Sarvabahuma Souharda Credit Co-operative, Bengaluru, the order said.

The agency will identify and investigate persons involved in connection with the alleged fraud.

Concerned officers and others have been asked to hand over the data, information and records as and when required by the CBI and provide place, resources, manpower and logistic support including Camp Office and vehicles to CBI in connection with the case, the order said.

Thousands of investors had time and again staged protests seeking justice but to no avail.


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