Karnataka High Court Orders Notice Over Union Bank of India Petition for CBI Probe

The Karnataka High Court ordered a notice to the state government on a petition by Union Bank of India, requesting a CBI probe into alleged financial irregularities in a state-run corporation. The bench highlighted the importance of integrity in banking institutions, suggesting state cooperation in transferring the investigation.

The Karnataka High Court on Tuesday issued a notice to the state government following a petition by Union Bank of India. The bank sought a directive to transfer an ongoing probe by a state-constituted SIT to the CBI, in connection with alleged financial irregularities at a state-run corporation.

Justice M Nagaprasanna scheduled the next hearing for August 7, recognizing Attorney General R Venkataramani's argument on the crucial integrity of banking institutions. He emphasized that the Reserve Bank of India (RBI) mandates banks to refer fraud cases to the CBI for impartial investigations, especially those crossing state lines.

The court urged the state government to align with the bank's request. Advocate General Sashi Kiran Shetty asked for two weeks to file objections. The state had previously formed an SIT led by ADGP Manish Kharbikar to investigate. The scandal surfaced following the suicide of a corporation official and led to resignations and arrests, spotlighting unauthorized transfers totaling Rs 187 crore.