Karnataka: 70-yr-old retired bank official sent to 9-yr jail for swindling PPF money
The scam was brought to light by one A Alam Pasha, who lodged a complaint with the vigilance department after a banker�s cheque given to him was found to be debited from the PPF account of a minor
The Karnataka High Court has upheld a nine-year jail term awarded to a retired deputy manager of State Bank of Mysore (SBM) by a lower court for swindling Rs 9.86 crore from over 350 public provident fund (PPF) accounts under his management between November 1995 and July 1998.
While his appeal was pending before the high court, the sentence had been kept in suspension.
CR Rajendra Babu, was a deputy manager of the bank in Bengaluru and was in-charge of the PPF section as is ‘passing officer’ between 1999 and 1998.
He was also in-charge of the ‘current account – PPF collection,’ of the PPF accounts maintained in 292 branches of the bank across India.
The scam was brought to light by one A Alam Pasha, who lodged a complaint with the vigilance department after a banker’s cheque given to him was found to be debited from the PPF account of a minor, Bangalore Mirror has reported.
Internal verification revealed that during the period between November 1995 and July 1998, Babu had “fraudulently withdrawn funds from as many as 359 PPF accounts to the tune of over Rs 9.86 crore, while creating false and bogus debit and credit vouchers, without the knowledge and consent of various account holders”.
Criminal proceedings were initiated against Babu and in December 2009, the trial court found him guilty.
Under Section 409 IPC, he was sentenced to nine years of simple imprisonment and a fine of Rs 2 lakh was imposed on him. He was also sentenced to between three years and seven years under five other sections of the IPC and imprisonment of five years under the Prevention of Corruption Act. The sentences were to run concurrently.
Babu approached the HC, which kept the sentence under suspension. The HC judgment by Justice Anand Byrareddy came on January 10.