Police in Ballari have registered a case after officials of the Karnataka Industrial Areas Development Board (KIADB) allegedly misused ₹16.17 crore over more than three years. The fraud was carried out with the help of bank employees and some private individuals.
Suman D Pennekar said that the case will be handed over to the Criminal Investigation Department because the amount involved is more than ₹10 crore. Initial investigation has already started.
According to a complaint filed by S M Kolalagi Mallappa on March 19, the fraud took place between October 15, 2022, and February 20, 2026. The money was taken from KIADB’s current account in Union Bank of India.
The FIR names seven accused persons. These include a bank manager, retired employees, contract staff, and private individuals.
As per the complaint, Santhosh Kumar HV, who handled bank work for the office, allegedly forged the signatures of two former executive engineers — J H Shridhar and S Janardhan Naik — on blank cheques.
These fake cheques were then used to transfer money into private bank accounts of four individuals — Shruthi K T, Baby Ayisha, Rakesha Badagal, and Vijayalakshmi.
📝 How to Identify Fake Cheques
- Check for spelling mistakes in name or amount.
- Verify cheque paper quality (fake cheques often use poor paper).
- Look for overwriting or alterations.
- Confirm MICR code and bank details.
- Check watermark and security features.
- Verify date format and consistency.
- Ensure amount in words and figures match.
- Check if cheque is stale or post-dated.
Always verify the drawer’s signature carefully before processing any cheque.
Even a small mismatch in signature can indicate fraud.
Do not rely only on system verification — manually compare signatures with records.
When in doubt, escalate the case immediately to the branch manager.
Another accused, Nazeer Ahmed, allegedly helped Santhosh Kumar by giving him access to banking work and supporting the illegal transactions.
During the time of Shridhar, about ₹12.19 crore was allegedly withdrawn through several cheques. During Naik’s time, around ₹2.48 crore was transferred. During Mallappa’s period, about ₹1.50 crore was taken. The total fraud amount is ₹16.17 crore.
The complaint also says that the bank manager and staff of Union Bank of India processed these cheques even though the signatures were fake. Because of this, they have also been named as accused.
Police have registered the case under several sections of the Bharatiya Nyaya Sanhita (BNS).
