NABARD swindled of Rs 1.6 crore

The amount was earmarked by the National Bank for Agriculture and Rural Development (NABARD) for the benefit of women self-help groups (SHG) in rural areas. The accused allegedly withdrew the amount after creating fake records of beneficiaries.


The amount was earmarked by NABARD for the benefit of women's self-help groupsu00a0 in rural areas

The scam came to light when M Ramakrishna, in-charge manager of Ramnagaram District Co-operative Bank, verified the accounts during the audit. He filed a complaint yesterday with the Central police station seeking a criminal action against the accused.

Master plan

The accused, BK Puttaramaiah, manager, loan branch; H Krishna, in-charge branch Manager, Kanakapura; KN Swamigowda, field superintendent, and Chennagiriappa of Agriculture Co-operative Bank of T Hosahalli grouped together and conspired to swindle the money.

They initially decided to avail of a loan by creating fake beneficiaries, and had planned to pay it back as the interest amount would be meager compared to other schemes.

As per rules, the Bank was directed by the NABARD SHG-Bank loan scheme, under which women SHGs could avail a loan of Rs 5 lakh, with a monthly interest of three per cent.
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The accused allegedly created false documents in the name of 20 women SHGs and availed a loan of Rs 5 lakh each.

"After their first attempt was a success, they made another attempt and created 12 more false documents, and availed of another loan of Rs 59 lakh," said Central police inspector Devid Meshak, adding that his team was still investigating the case.

No arrests were made until the time of going to press.

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