The Central Bureau of Investigation (CBI) will soon present its report on the alleged irregularities committed by former housing and muzrai minister SN Krishnaiah Setty in availing loan by using fake names.
The CBI had submitted its final report in this regard on February 5, 2010, in a sealed cover. Karnataka high court on Saturday directed the registry to open the sealed cover and return the report to the investigation officer of the CBI for presentation before the jurisdictional court. The jurisdictional court, after receiving the final report, shall proceed in accordance with the law. The case was adjourned to March 13.
Setty is facing allegations of availing housing loans from the State Bank of Mysore by using fake names. The bank’s Gandhinagar branch had registered a complaint on January 30, 2008, alleging that some individuals had procured loan through Sree Balaji Krupa Enterprises by submitting fake documents. The scam was detected on December 28, 2005. It was alleged that Setty, the then housing and muzrai minister, had procured the loans.
Investigation revealed that the chief manager had colluded with Sree Balaji Krupa Enterprises and sanctioned 181 housing loans to the tune of `7.17 crore in the names of several employees of ADE, HAL, BEML and Nova Technologies. Further, it was found that some of these persons who were granted loans did not even exist.
A FIR was registered against Setty on February 1, 2008. In December 2009, the HC gave permission to the CBI’s bank securities and fraud cell to probe the matter and present its final report. The CBI then submitted its report on February 5, 2010. On Saturday, the HC cleared the way for the CBI’s report to be presented.
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