HC nod for CBI probe against Krishnaiah Setty

HC nod for CBI probe against Krishnaiah Setty

He is accused of cheating SBM of Rs 7.5 cr

In a major setback to former Muzrai minister S N Krishnaiah Setty, the High Court on Monday dismissed his petition seeking quashing of an FIR filed against him by the Central Bureau of Investigation (CBI) in connection with the allegation of cheating State Bank of Mysore (SBM) to the tune of Rs 7.5 crore.

Krishnaiah Setty

Justice N Ananda dismissed the petition and gave the green signal to the CBI probe. Setty is alleged to have borrowed Rs 7.17 crore as housing loan from the bank in the name of 181 beneficiaries. He is said to have obtained the loan in the name of employees and ex-employees of various government organisations like BMTC, KSRTC, ITI, ADE, HAL, BEML, NOVA Technology, BSNL and other firms by submitting false payslips in connivance with the bank manager M T V Reddy.

Following a complaint by R D Naidu, Chief Vigilance Officer, SBM, the matter reached the High Court, that ordered a CBI probe into the allegations. The CBI, in its report, had said Rs 15.61 crore was borrowed in the name of 263 beneficiaries and Rs 1.47 crore borrowed in the name of 33 individuals are outstanding. Most of the loan is borrowed without the knowledge of the ‘beneficiary,’ said the report.

It also stated that Rs 20,000 was credited into the account of the then bank manager from Setty’s firm Balaji Krupa Enterprises. The loan was borrowed by showing a patch of land as guarantee at Nagavara which is now acquired by Karnataka Industrial Areas Development Board.

Setty was booked under criminal conspiracy, Section 120 (B) , Section 409 (criminal breach of trust), Section 419, (cheating by personation) Section 420, (cheating) Section 467, (forgery) Section 471 (use of a forged document knowing despite being aware that it is a forged one) of Indian Penal Code and under Sections 13 (2) and 13 (1) (D) of the Prevention of Corruption Act.