Six Union Bank officials charged in Rs 94.73 crore fraud scandal

Six officials of the Union Bank of India have been implicated in a fraudulent scheme involving the diversion of approximately Rs 94.73 crore from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation Ltd, police reported on Thursday.

The case came to light following the tragic suicide of a Corporation official on Sunday. The official left behind a note naming Managing Director J G Padmanabh, Accounts Officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal as responsible parties.

Immediate Actions and Investigation

The Union Bank of India promptly classified the transactions as fraudulent upon discovering the irregularities. The bank has initiated a formal complaint with the Central Bureau of Investigation (CBI) to ensure a thorough investigation and identify the culprits swiftly. In the meantime, three branch officials have been suspended pending further inquiry.

A formal complaint was filed on May 28 by A Rajashekar, General Manager of the Corporation, citing "severe fraudulent activities" involving top management at the Union Bank's MG Road branch and other third parties. Rajashekar detailed the transfer of Rs 187.33 crore from various sources into the Corporation's savings account at the MG Road branch on February 19.

Discovery of Fraudulent Activities

According to the complaint, the Corporation did not communicate with the bank due to the model code of conduct, resulting in the bank failing to send new account documents to the registered address. When Corporation officials attempted to retrieve these documents on May 21, they were denied by the branch officer, who falsely claimed the documents had already been issued.

Subsequent verification revealed numerous forged documents, including letters, cheques, and RTGS requests with fake signatures, which facilitated the unauthorized disbursement of funds totaling Rs 94.73 crore from the Corporation’s account.

The complainant accused the Union Bank’s management of neglecting to address these illegalities despite being aware of the fraudulent activities conducted by branch officials and other parties. This negligence allegedly led to the suicide of Chandrashekar P, the Account Superintendent, who named key officials in his suicide note.

Legal and Administrative Response

An FIR has been registered at the High Grounds Police Station, and the case is currently under investigation by the CID team. The Union Bank of India has reiterated its commitment to integrity and transparency, assuring full cooperation with the authorities to resolve the matter justly and expeditiously.

In its statement, the bank emphasized its dedication to its customers and stakeholders, highlighting measures being taken to prevent such incidents in the future.