In a significant legal development, a special court in Karnataka convicted former state minister and BJP leader Maluru Krishnaiah Shetty on Thursday for his involvement in a Rs 7.17 crore bank fraud case. Presided over by Judge Santosh Gajanana Bhat, the court found Shetty and three others guilty of using forged documents to defraud a private bank, with the sentencing yet to be determined.
The case, spearheaded by the Central Bureau of Investigation (CBI), originated from a complaint by the victimized bank, leading to a detailed investigation into the fraudulent activities. The court held Shetty, along with accomplices Srinivas and Muniraju, accountable for several charges including criminal conspiracy and forgery.
Tracing back to 1993, the fraud involved Shetty’s enterprise, Balaji Krupa Enterprises, which falsely promised housing board loans to public sector employees. Using counterfeit documents created in their names, Shetty successfully secured bank loans, failing to repay Rs 3.53 crore of the borrowed amount.
Throughout the CBI’s inquiry, substantial evidence confirmed Shetty’s direct involvement in the scam, resulting in charges under multiple sections of the Indian Penal Code. These include 120B for criminal conspiracy, 409 for criminal breach of trust, and 420 for cheating, among others.
A former MLA and once a close associate of former Karnataka Chief Minister B.S. Yediyurappa, Shetty had notable political influence, previously serving as the Muzrai Minister in the BJP government. His political career has seen various shifts, including a brief period with the Congress before returning to the BJP in 2017. Despite his efforts to secure a BJP ticket for the 2023 Karnataka assembly elections, he was overlooked in favor of another candidate, leading him to run as an independent—a race he lost significantly.
