The Special Judge, CBI Cases, Bangalore (Karnataka) has sentenced K. Anand @ Kebballi Anand, H. S. Nagalingaswamy, Chandrashekar, H. K. Nagaraja (First Division Assistant), Mandya Urban Development Authority (MUDA), Mandya, Karnataka and K. B. Harshan, all to undergo seven years rigorous imprisonment and imposed a total fine of Rs. 5,02,75,000 in a case of criminal misconduct of misappropriating 5 cheques of MUDA amounting to Rs. 1 crore each.
The Court has also ordered to award an amount of Rs. 5,02,00,000 as compensation to Mandya Urban Development Authority (MUDA) which was victim in this case and forfeit the remaining fine amount to the State.
CBI had registered the instant case on the request of Karnataka Government on the allegations that K. Anand (who was doing business in iron ore in the name of M/s A. R. Logistics), Nagalingaswamy (CEO of M/s Future Farm & Estates Ltd.), Chandrashekar (a real estate agent & Proprietor of M/s Akash Enterprises), H. K. Nagaraja (a public servant / working as FDA in Mandya Urban Development Authority, Mandya) and K. B. Harshan (a private person, employee of K. Anand) had entered into a conspiracy and misappropriated five cheques amounting to Rs. One crore each issued by the then Commissioner of MUDA.
During investigation, it was found that the accused Chandrashekhar opened Current Account in the name of his non-existent Proprietary concern M/s Akash Enterprises at Indian Bank, Mandya in 2012.
Thereafter, in February, 2013, K. Anand and H. S. Nagalingaswamy with the assistance of H. K. Nagaraja, working in MUDA, fraudulently obtained 5 cheques of Rs. 1 crore each issued by then Commissioner, MUDA from its SB Account, Allahabad Bank towards investment in Fixed Deposits in Indian Bank, Mandya.
The accused wrote the account number of M/s Akash Enterprises in the payee column of these cheques and got the entire proceeds of these cheques fraudulently credited to the Current Account of M/s Akash Enterprises and misappropriated the amount.
Thereafter, fake fixed deposit receipts were submitted to MUDA through H. K. Nagaraja which were kept for record purposes.
K. B. Harshan assisted both K. Anand and H. S. Nagalingaswamy in this fraud by filling credit vouchers to deposit the cheques and making withdrawals and transfers from the account.
After investigation, CBI filed charge-sheet on 27.06.2015 against the accused.
The Trial Court found the accused guilty and convicted them.
