Krushi scamster's claim holds no water

Md A Basith / TNN / Jul 14, 2006, 02:14 IST

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Former Krushi Bank chairman claimed that scam-hit Charminar Bank was paid back Rs 21.57 crore of its Rs 38 crore deposits with his firm.

HYDERABAD: Former Krushi Bank chairman Kosaraju Venkateshwara Rao has claimed that scam-hit Charminar Bank was paid back Rs 21.57 crore of its Rs 38 crore deposits with his firm. However, the findings of the statutory audit report of the Charminar Bank prove otherwise.
The audit report clearly states Charminar Bank founder chairman Syed Alamdar Hussain alias Sajjad Agha had deposited Rs 38 crore with the Krushi Bank as fixed deposits between July 29, 1998 and December 27, 2000.But there is no record of the bank getting back the money.
It says entries were passed in the books of Charminar Bank as if a part of the total deposit had been received from the Krushi Bank by a particular branch of the Charminar Bank.
The entries also show that the particular branch (Purani Haveli) of the Charminar Bank subsequently transferred cash to other branches and the amount was even given to several loanees on the same day. This transaction was shown for about Rs 21.57 crore.

The report says a series of transactions, particularly in some cases with different denominations recorded in the books of different branches for the same amount on the same date raises high suspicion about the genuineness of the receipts of cash and also their disbursement as loans.
On one transaction of Rs 5 crore, the audit report raises doubts as "cash was deposited by the Krushi Bank in Purani Haveli branch of the Charminar Bank without there being any account with Purani Haveli branch. How?"

According to the report, Krushi Bank on March 24, 2001 paid Rs 5 crore to Purani Haveli branch of Charminar Bank in denominations: 20,000 notes X Rs 500; 2,00,000 notes X Rs 100 and 4,00,000 notes X Rs 50.
Even if just Rs 50 denominations are verified, the Charminar Bank should have received 4,00,000 notes of Rs 50. The opening balance of the Purani Haveli branch was 10,436 notes of Rs 50 denomination.
Hence, the total balance after receiving 4,00,000 notes of Rs 50 should be 4,10,436 notes. On that particular day, 56,528 notes of that denomination were part of transactions. Balance should have been 3,53,908 notes of Rs 50 denomination.
But the balance as per the book was 2,17,356 notes of Rs 50. The report says this raises doubts about the genuineness of the transaction. Similarly, the audit report raised doubts on several other transactions.

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