CID files chargesheet against KPTCL director

He is accused of fraudulently investing Rs18 crore in two personal insurance policies, causing a loss of Rs 4.98 crore to the corporation

He is accused of fraudulently investing Rs18 crore in two personal insurance policies, causing a loss of Rs 4.98 crore to the corporation

The Criminal Investigation Department (CID) has busted a scam involving a director ofu00a0u00a0 of Karnataka Power Transmission Corporation Limited (KPTCL) for incurring loss to the state exchequer to the tune of Rs 4.9 crore through his illegal transaction.


Big fall: When the market crashed and Naik lost his money, other
directors got suspicious and filed a complaint with the Ulsoor Gate police,
alleging Naik's financial irregularities. Pic/Sanjay MD

The accused, S Srinivas Naik, director (commercial), would not have been caught, if the share market were stable. Luck ran out for him when the market collapsed, following which Rs 18 crore belonging to the company, which he had invested, went in loss and he lost 4.9 crore in the process.

A source said that Naik believed that by investing government funds in the share market for some time would fetch him some profit, which he would later withdraw, and return the principal amount to the government.

He consulted Vipin Kumar Bharadwaj and Muttuveni, share brokers, as agents, who readily agreed to help him with one per cent commission (which comes to approximately Rs 18 lakh).

However, when the market crashed and Naik lost his money, other directors got suspicious and filed a complaint with the Ulsoor Gate police, alleging Naik's financial irregularities.

The case was later shifted to the CID, which found that Naik had conspired with the remaining four accused persons and fraudulently invested Rs 18 crore of KPTCL funds in January 2008 in two personal insurance policies.

CID officials further said that the investigation with regard to the involvement of other senior officials of BALICu00a0-- Kamalesh Goyal, CEO, PRK Rao, VP, and Rajesh Vishwanath, CEO, could not be completed as the same has been stayed by High court.