Fraud reported at Sriram Finance in Bhatkal; Three arrested

09:07PM Sun 23 Jun, 2024

Bhatkal: 23 June 2024 (Bhatkallys News Bureau)  Raghavendra Rajeeva Swamy, the primary accused in the misappropriation case involving Sriram Finance, has been arrested by Bhatkal Rural Police. This follows the earlier arrests of the second and third accused in connection with the case.


Swamy, who had been employed at the Bhatkal branch of Sriram Finance since January 1, 2023, is accused of misusing his authority to waive vehicle loans for some clients entirely. Senior staff member Naveen Poojary reported to Bhatkal Rural Police that Swamy allegedly defrauded the company of approximately Rs 89.8 lakh.


According to the complaint, Swamy duped both the company and its clients by preparing fraudulent hypothecation certificates in the company's name, using the company seal, and forging the signature of the chief officer at the company's head office. These certificates were then used at the Regional Transport Office (RTO) to transfer vehicle ownership. The fraudulent activity was carried out without the necessary approval or permission from superiors. Vehicles were repossessed even though clients had not cleared their loans, and the proceeds from the sale of these vehicles were pocketed by Swamy, bypassing company regulations. 


Additionally, Swamy reportedly collected money from clients over several months, promising loan clearances but using the funds for personal gain rather than remitting them to the company. The complainant informed the police of these fraudulent activities, leading to Swamy's arrest.


A case has been registered, and further investigation is underway by the Bhatkal Rural Police.