Economic offences surge in state, CID decides to deploy economists to probe 700 cases

NT Correspondent Bengaluru: With the number of cases of financial fraud increasing day by day in the state, most of the cases of fraud worth crores of rupees have been transferred to the CID. The Criminal Investigation Department (CID) has decided to depute economists and auditors to assist in the investigation of economic offence cases. The CID is planning to appoint four persons who will help in speedy investigation of the cases. So far, around 700 cases have been registered under the Economic Offences Wing of the CID such as financial fraud, depositors' fraud and economic offences.

Of these, 210 cases are being investigated under the Karnataka Protection of Interest of Depositors in Financial Institutions (KPIDFE) and Unregulated Deposit Schemes Act, 2019. The challenge is to investigate cases like financial fraud. In cases like irregularities, it is difficult for the CID police to know the source of the money. This is adversely affecting the investigation. The CID's aim is to crack the money laundering network by deputing four persons on contract basis to tighten the noose for the accused and speed up the investigation. Economic offences in the state are increasing year after year.

Recently, a case of fraud of Rs 74.89 crore was registered pertaining to Gokak Mahalaxmi Urban Co-operative Bank. A case has been registered against the accused and Belagavi SP Bhimashankar Guled has sought a CID probe. Economic offences account for the lion's share of the thousands of cases registered with the CID so far. Most of the cases have been registered in the form of frauds on the pretext of high dividends or interest, multi-crore scams by co-operative banks and cheating innocent people. In most of the cases, an audit report is required to know how much money the companies have swindled.

However, barring a few cases, in most of the cases, the audit report has not reached the investigating officers, which has hampered the investigation. In case of fraud of more than Rs 10 crore, a case will be registered with the CID on the directions of the government or the court. A total of 1,130 cases, including financial fraud, have been registered so far. Of these, chargesheets have been filed in 750 cases. Of the 750 cases chargesheeted, 600 concern economic offences, a senior CID official said.