Man swindles SBI of Rs 1.9 crore

A man has managed to withdraw Rs 1.98 crore from the Kudatini branch of the State Bank of India (SBI) by using a fake company name and by forging documents.

The accused, Shrikanth Madappa Nayak, opened an account at the SBI Kudatini branch on November 18, 2011, under the name of Veera Ganapathi Enterprises, a non-existent company involved in ore export.

He presented a “letter of credit”, “issued” by the Surat (Gujarat) branch of the Punjab National Bank, stating that his company was into business with Ashok Trading Company at Surat.

The letter of credit mentioned that Ashok Trading Company had deposited nearly Rs two crore for the ore purchased from Veera Ganapathi Enterprises and asked the SBI to sanction the same.

Since the amount was huge, the Kudatini branch officers informed Shrikanth to contact their head office in Bellary. Shrikanth presented the letter of credit and other related documents at the main branch and got Rs 24 lakh sanctioned.

Shrikanth was also asked to submit a confirmation letter from the Punjab National Bank to validate the letter of credit. He forged this one too.

Following this, the SBI sanctioned Rs 1.64 crore which he deposited into his account.

Shrikanth withdrew Rs 54 lakh on December 29 and again on January 5, 2012, he withdrew Rs 1.10 crore and escaped.

The cheating came to light when the Surat branch, suspecting his credentials, dashed a letter to the Kudatini branch seeking clarifications.

SBI Manager Prem Singh Nayak has lodged a complaint with the police.

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