Private Bank Fraud Case: Raghupathi Bhat Calls for SIT Probe Amidst Counterclaims from Mahalakshmi Cooperative Bank
Udupi: Former MLA Raghupathi Bhat has unequivocally accepted a challenge posed by officials of the Mahalakshmi Cooperative Bank to take an oath at the Sri Venkataramana Temple in Karambili on November 9, concerning allegations of fraud linked to the bank’s operations in the city. This development follows claims made by victims of an alleged scam within the bank, which prompted Bhat to seek justice on their behalf.
In a press conference held on Thursday, November 7, Bhat disclosed that he had been approached by individuals who had fallen victim to the bank’s purported fraudulent activities. Initially reluctant to involve himself, fearing potential political ramifications, Bhat stated that he discerned the gravity of the situation after engaging with the affected parties and their escalating protests for investigation.
Bhat revealed that he had advocated for a formal inquiry via social media, which triggered a formal response from the bank. He also recounted an invitation from the victims to join their protest, which he declined due to concerns about being perceived as exploiting the situation for political gain.
Addressing the bank’s challenge, Bhat affirmed, “All the victims are ready to take an oath before God regarding the issue, and a date and time have been set for this. The bank’s letter requires me to take an oath, but I have made it clear that I will serve as a mediator for the victims to take their oaths, as also communicated over social media.”
In subsequent correspondence, the bank reiterated its trust in Bhat’s integrity, urging him to attend the oath-taking ceremony on November 9.
Elaborating on the nature of the allegations, Bhat outlined three primary methods of deceit attributed to the bank:
During the COVID-19 pandemic, middlemen purportedly approached victims, offering loans of ₹20,000 in cash without legal documentation while collecting cash installment repayments of ₹900. Victims later discovered that they were sanctioned loans of ₹2 lakh in their names without their awareness.
Allegations were made regarding forged signatures of illiterate individuals and unauthorized thumb impressions.
In a separate instance, a group of fishermen received loan documents but reported that they never received corresponding funds from the bank.
Bhat underscored that these incidents exemplified a troubling pattern of fraud, insisting on a rigorous investigation to achieve justice for the victims. He stated that if wrongdoing had occurred, it was incumbent upon the bank’s management to rectify the situation for those affected. Additionally, he expressed his intent to appoint legal representation for the victims and pursue all necessary legal avenues, including the establishment of a Special Investigation Team (SIT) if warranted. Bhat lamented that FIRs filed by victims have encountered delays, with legal actions initiated against those advocating for justice.
Clarification By Yashpal Suvarna, Chairman of the Mahalakshmi Cooperative Bank
In a response to Bhat’s allegations, Yashpal Suvarna, Chairman of the Mahalakshmi Cooperative Bank and Udupi MLA, defended the bank’s actions. He asserted that the institution has initiated legal proceedings against individuals implicated in the creation of fraudulent documents and misinformation campaigns. Suvarna stated that those making accusations against the bank are, in fact, defaulters who have been instructed by the Cooperative Court to repay their loans or face asset seizure.
The chairman characterized the allegations as malicious attacks aimed at undermining the bank’s reputation, emphasizing the bank’s commitment to transparency and adherence to cooperative principles, as regulated by the state and RBI. He announced that the bank will hold a press conference on Saturday to unveil relevant documentation in support of their position and resolutely contest the claims made against them.
As the controversy unfolds, both parties stand firm in their assertions, leaving the door open for a possible thorough investigation to clarify the matter and determine accountability for the alleged fraud.