In a significant breakthrough, the Central Economic Crimes (CEN) police have arrested five more individuals, bringing the total number of arrests to 19 in connection with a major financial fraud involving the Bagalkote tourism department. The case, which involves the illegal transfer of over ₹2.47 crore, will soon be handed over to the Crime Investigation Department (CID) for further scrutiny.
The investigation began on July 11 following a complaint from tourism officials. The arrested suspects, who include Suraj Sagara, a contract sales executive at Bagalkote IDBI Bank, and several bank employees—assistant managers Nisha and Saraswati, public relations officer Vidyadhara Hiremath, and loan department assistant manager Rohit—are charged under the Indian Penal Code and are currently in judicial custody. Additionally, 14 individuals who deposited money into the illicit accounts have also been detained.
The fraudulent activities, which spanned from 2021 to 2024, involved illegal transfers to 33 accounts through 54 transactions. The modus operandi entailed account holders depositing funds in exchange for commissions ranging from 30% to 50%. These funds were then diverted by Sagara and other bank staff, who redistributed the money illicitly.
The case has revealed that the fraud extends beyond the tourism department, affecting several other departments. The total detected fraud has now reached ₹6 crore, including ₹79.75 lakh from the minority welfare department, ₹86.40 lakh from the panchayat raj engineering department, ₹18.15 lakh from the handloom and textile department, and ₹1.76 crore from the backward class welfare department.
The ongoing investigation aims to uncover further details of this extensive embezzlement scheme.