IOB manager among 5 arrested in Rs 55 cr fraud case

Mangalore Today News Network

Mangaluru, Nov 29, 2017:  The Suratkal police have arrested the Manager of the Kulai branch of Indian Overseas Bank and four others in connection with the case of alleged misuse of fixed deposits amounting to Rs 55 crores of the Karnataka Rural Infrastructure Development Ltd (KRIDL).

Those arrested are the IOB  Manager Serin Madhusudan, Salaam, Jerry, Sunil and Sijo. They have been produced before the court and remanded  to judicial custody.

The KRIDL had already suspended three officials with regard to the fund misuse which was done reportedly with the help of bank officials. The Bank manager had   absconded no sooner allegations were heard against him and the KRIDL had lodged a complaint.

The Suratkal police who had investigated the case,  had found that two fixed deposits of Rs 20 crore and Rs 35 crore in the Kulai branch if IOB were later transferred to other accounts.

The fraud came to light when the  officials of the Koramangala branch of Vijaya Bank grew suspicious after Rs 50 lakh was  transferred to the dormant account of Shah Export.

 It has been learnt that the KRIDL had deposited Rs 55 crore in the IOB as it had offered interest at the rate of 5.75 per annum which was the highest.