In a surprising turn of events, an RTI response has revealed that the Central Bureau of Investigation (CBI) is not investigating the massive scam involving the Bengaluru-based Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN), contradicting claims made by Karnataka Chief Minister Siddaramaiah. This revelation has cast doubt on CM Siddaramaiah’s earlier statements, where he asserted that the investigation had been handed over to the CBI, causing disappointment among depositors who had been hopeful that a CBI probe would bring justice.
The controversy surrounding the SGRSBN scam comes at a time when CM Siddaramaiah is already embroiled in another legal issue. The Karnataka High Court recently deferred proceedings related to the alleged Mysore Urban Development Authority (MUDA) scam, providing temporary relief to the Chief Minister. This latest development, however, adds further pressure on CM Siddaramaiah, as depositors and opposition parties question the credibility of his previous statements.
In December of the previous year, CM Siddaramaiah had publicly claimed that the CBI was taking over the investigation into the SGRSBN scam, which had come to light in 2020 when the Reserve Bank of India (RBI) imposed withdrawal restrictions on the bank. The restrictions exposed the misappropriation of approximately Rs 2,500 crore by the bank’s management, leaving over 45,000 depositors in a state of uncertainty. While many depositors received the Rs 5 lakh insurance amount from the Deposit Insurance and Credit Guarantee Corporation (DICGC), more than 15,000 depositors with higher savings have not been fully compensated.
CM Siddaramaiah had emphasized that thousands of depositors had invested their life savings in the bank, with hopes of securing their future. He claimed that the approval to hand over the investigation to the CBI had been granted, highlighting his commitment to ensuring a thorough probe and justice for the victims. “An approval has been given to hand over the investigation of the Guru Raghavendra Cooperative Bank, Vasishtha Bank, and Guru Sarvabhauma Bank scams to the CBI,” Siddaramaiah stated, emphasizing the need for a comprehensive investigation into the fraudulent activities.
The RTI response, however, contradicts these claims, revealing that the CBI is not involved in the investigation. This has caused considerable disappointment among depositors who believed that a CBI probe was their best hope for justice. The SGRSBN scam has had a devastating impact on the lives of the depositors, many of whom invested their lifetime savings for retirement, children’s marriages, and other dreams. With the Enforcement Directorate (ED) having attached properties worth Rs 159 crore, the depositors had hoped that a CBI investigation would bring those responsible to justice.
Siddaramaiah’s claim that he had actively campaigned for a CBI probe into the bank scam, both as the Leader of the Opposition and in his current role, is now under scrutiny. The Chief Minister had expressed concern for the depositors and vowed to push for a CBI investigation, citing his firsthand experience of witnessing the distress of those who lost their savings. The RTI disclosure has raised questions about the veracity of his statements and the actual progress of the investigation.
As the situation unfolds, depositors and opposition parties are demanding clarity and accountability from the Karnataka government. The revelation has not only deepened the mistrust among depositors but also added another layer of complexity to the ongoing controversies surrounding CM Siddaramaiah’s leadership and the handling of high-profile cases in the state.
