Dajiworld Media Network - Bengaluru
Bengaluru, Feb 5: The Special Court for Elected Representatives has sentenced former minister Krishnaiah Shetty to three years in prison in a bank fraud case. The court found Shetty guilty, along with three others—MTV Reddy, Muniraju, and Srinivas—in the case.
Earlier in the day, the court had declared the four accused as guilty. The quantum of punishment was announced in the evening. While sentencing Shetty to three years in jail, the court also granted him bail. Shetty's lawyers have indicated that they will file an appeal against the verdict. The court has granted him 30 days of bail to facilitate the appeal process.
The case dates back to 2012 when Krishnaiah Shetty, owner of Balaji Krupa Enterprises, was accused of fraudulently obtaining a loan of Rs 7.17 crore from a bank. Shetty allegedly lured public sector employees by promising them housing loans in 1993. He created fake accounts in the names of several employees to secure the loan. It was further alleged that Rs 3.53 crore of the loan amount remains unpaid to date.
The Central Bureau of Investigation (CBI) investigated the case and filed a chargesheet. The accused were charged under various sections of the Indian Penal Code (IPC), including 120B (criminal conspiracy), 409 (criminal breach of trust), 419 (cheating by personation), 420 (cheating), 467 (forgery of valuable security), 471 (using forged documents as genuine), and sections 13(1)(d) and 13(2) of the Prevention of Corruption Act.
The court's decision has brought a significant development in the long-pending case, highlighting the legal consequences of financial fraud.