Fixed deposit of Rs. 25 crore reflected only Rs.13 crore on maturity

The Central Bureau of Investigation (CBI) on Tuesday arrested 11 persons, including two bank managers, in connection with alleged misappropriation of funds to the tune of Rs. 12 crore.

According to sources in the agency, Punjab National Bank authorities lodged a complaint in 2011 that the fixed deposit funds of Bangalore-based Karnataka Industrial Area Development Board in Bangalore were misused.

The board had invested Rs. 25 crore as fixed deposit, whereas bank records at the time of maturity reflected only Rs. 13 crore.

Investigation revealed that Rs. 12 crore was transferred to an account in the State Bank of India in Palayamkottai on the basis of fake documents.

The then manager of the PNB (Sangagiri Branch, Salem district) Raja Krishnan and the then manager of SBI (St. Xavier College Branch) Lazar Jayaprakash had allegedly conspired with nine others to cheat the bank.

Special teams of the CBI’s Anti-Corruption Branch arrested the 11 accused persons in different parts of Tamil Nadu.