CHICKABALLAPUR: An insurance agent, in connivance with two bank employees, has allegedly defrauded Canara Bank’s Bagepalli branch in Chickaballapur district of Rs. 13.15 lakh.
On a complaint by the bank manager, the Bagepalli police on Thursday arrested N. Mudduraj, an agent of the Life Insurance Corporation of India (LIC).
The police are on the lookout for bank employees K.N. Prashanth Kumar and C.K. Nanjundappa.
Mr. Mudduraj, a native of Paipalya village in Bagepalli taluk, used to collect premium in cash, from policy holders. However, he used to issue his own cheques to the LIC towards the premium.
Although there were no funds in his account at the Bagepalli branch of the Canara Bank, the two accused employees allegedly ensured that the cheques were cleared, the police said.
From February 2007 to May 2009, Mudduraj had issued 27 cheques, amounting to Rs. 13.15 lakh in favour of LIC’s Chickaballapur branch. During audit of the branch accounts, the bank officials found certain discrepancies.
Following an inquiry, the fraud came to light, the police said.
Meanwhile, the 27 cheques, which Mudduraj had issued, were reported missing from the bank.
The police suspect that Mudduraj could have defrauded a two other banks in Bagepalli in a similar manner.