Major Financial Fraud Uncovered in Karnataka

BENGALURU: In a significant development, the Karnataka CID has officially charged BJP MLA and former minister Ramesh Jarkiholi, along with others, in a massive bank fraud case amounting to Rs 439 crore. The chargesheet, filed in a Bengaluru court, accuses them of defrauding the Karnataka Cooperative Apex Bank and its associated district cooperative banks.

The Allegations

The case stems from a complaint filed by the bank's GM in January last year. It alleges that Soubhagya Laxmi Sugars Ltd (Gokak), under the chairmanship of Jarkiholi, along with directors Vasant V Patil and Shankar A Pawade, borrowed Rs 232 crore from July 2013 to March 2017. The accused are said to have violated loan conditions by altering the company's board before repayment, an act described as intentional cheating.

Legal Proceedings

Despite attempts by Jarkiholi and the others to have the FIR quashed by the Karnataka High Court, their plea was rejected, leading to the CID submitting the chargesheet on April 22. Prior to this, Jarkiholi repaid Rs 120 crore, with the CID indicating plans to file a supplementary chargesheet as the investigation continues.