Karnataka: CBI denies probing Guru Raghavendra Co-operative Bank scam

Bengaluru: The depositors-victims of the Sri Guru Raghavendra Co-operative Bank (SGRCB) scam are in a state of dismay and uncertainty as the Central Bureau of Investigation (CBI) has said it’s not probing the case. 

The CBI responded to an RTI petition filed by H M Manjunathaiah, a resident of Vidyaranyapura, who is also a victim of the scam.

“It is to inform you that the CBI has not taken over the case related to Shri Guru Raghavendra Co-operative Bank.” 

On December 2, 2023, a statement from the Chief Minister’s Office said Chief Minister Siddaramaiah had ordered a CBI probe into financial frauds at Sri Guru Raghavendra Sahakara Bank, its sister concern Sri Guru Sarvabhauma Souharda Credit Cooperative Ltd, and Sri Vasista Credit Souharda Sahakari Ltd. 

DH also accessed a letter from proceedings of the government of Karnataka to the CBI dated December 2, 2023. The letter signed by the Under Secretary to the Government, Home Department (Crimes), sought the CBI to take over the case and probe the alleged fraud. 

Manjunathaiah told DH that they were unaware of the progress in the investigation and had reached out to the CBI multiple times but received no response. 

“When I got no response for any of my letters, I filed an RTI (application) requesting the progress in the probe. But the CBI said it’s not investigating the case,” he told DH. 

Manjunathaiah stressed that they had no idea what was going on with the probe and didn’t even know the agency that was probing the case

He requested the government to look into the development and act on it immediately. 

Harish V, member of the SGRCB Shareholders and Depositors’ Association, noted that the confusion about probing might be due to a circular issued by the Government of India in 2018. 

Harish noted that the circular list guidelines need to be followed by the state governments while referring cases to the CBI, which mandates proposals through a “single-window system.” The Karnataka government may not have sent the proposal through a single-window system.