6 officials of Union Bank of India booked in illegal money transfer case

Bengaluru, NT Bureau: A case has been registered against six officials of the Union Bank of India for allegedly fraudulently diverting around Rs 94.73 crore of the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation Ltd to various other bank accounts, police said on Thursday.

The action comes after an official of the Corporation died by suicide on Sunday, leaving behind a note in which he named the Managing Director J G Padmanabh, Accounts Officer Parashuram G Durugannavar and Union Bank of India Chief Manager Suchismita Rawal in the note.

In the complaint on May 28, A Rajashekar, General Manager of the Corporation alleged "severe fraudulent activities" involving top management of Union Bank of India, MG Road branch here and other third parties, which have caused "substantial financial and reputational damage" to the organisation.

He said on February 19, the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation transferred its account from Vasanthnagar branch to M G Road branch of the national bank.

"A total of Rs 187.33 crore was transferred from various banks and the State Huzur Treasury Khajane-II to our savings Bank account at Union Bank of India, MG Road Branch," he said.

Citing the model code of conduct, the corporation did not communicate with the bank. Consequently, the bank failed to send the new passbook and chequebook to our registered address, he said in the complaint.

When officials visited the branch on May 21 to collect the documents they were denied by the branch officer, who later visited the corporation office on May 22, claiming that the documents were already issued, which was found to be untrue.

Further perusal revealed forged letters, for ge d che que s, a nd RTGS requests with fake signatures of the officers and Account Of ficer, forged/fake board resolution leading to unauthorized disbursements of funds from the organisation's bank account, the complaint alleged.