Karnataka Co-operative Bank Scam: KPCC holds meeting with depositors, approx 500 attend

A meeting was held on Friday to discuss the problems faced by the depositors of Sri Guru Raghavendra Sahakara cooperative Bank in Karnataka. The scam which emerged on January 20 last year has not seen any relief to date. Depositors claim that the Karnataka Government and Central Government agencies have not responded positively and no proper investigation has been conducted in the scam worth Rs 1,400 crore.

The depositors, mostly senior citizens who fell victim to the fraud, had their life savings in the bank accounts. Bearing in mind the troubles faced by depositors, especially during the pandemic, Dr Shankara Guha Dwarakanath Bellur, General Secretary of KPCC doctors’ cell, called a meeting of all depositors and investors to discuss their problems and to formulate the next course of action. It had an excellent response as close to 500 people attended the meeting.

“We have formed a core team to discuss the next plan of action and soon will communicate the same to everyone,” Dr Bellur said.

What is Sri Guru Raghavendra Sahakara Bank Niyamitha scam?

The Sri Guru Raghavendra Sahakara (SGRS) Bank, which has been operating since 1999, had come under the scanner of the Reserve Bank of India (RBI) for misappropriation of funds worth approximately Rs 1,400 crore. Subsequently, the Anti-Corruption Bureau in 2020, raided 5 offices of SGRS Bank officers. 

As per reports, at the end of FY19, the bank had a paid-up capital of Rs 70 crore with total deposits of Rs 2,291 crore, and loan and advances of Rs 1,687 crore. The deposits grew from Rs 36 crore a decade ago to the current amount, and the loan and advances increased from Rs 30 crore and tripled between 2014 and 2020.

The RBI in January had capped the withdrawal limit per depositor to ₹35,000. However, it later reviewed the liquidity position and increased the limit to Rs 1 lakh after a few months. The apex bank had also said that more than 54 per cent of the depositors of the bank will be able to withdraw their entire account balance. 

After the crisis hit the bank, Bengaluru South Lok Sabha member Tejasvi Surya came out in support of the depositors and assured them of safety for their money.

Later when a PIL in this matter was filed in the Karnataka High Court, the police were ordered to investigate the misappropriation of deposits in the bank. The court passed the order based on a PIL filed by K R Narasimha Murthy and three other depositors of the bank. The investigation into the scam is still ongoing.