In a notable ruling underscoring judicial zero tolerance toward white-collar fraud within the banking system, the First Additional Chief Judicial Magistrate (CJM) Court in Mysuru has convicted A.V. Kulkarni, a former Chief Manager of the State Bank of India (SBI). Delivering the verdict, Judge Prakash V. held Kulkarni guilty under Section 409 of the Indian Penal Code (criminal breach of trust by a public servant or banker) and sentenced him to one year of rigorous imprisonment alongside a cash fine of ₹50,000. Out of the fine amount collected, the magistrate directed that ₹40,000 be remitted directly to the State Bank of India as statutory restitution for operational damages incurred during the prolonged legal proceedings.

Anatomy of the ₹61.57 Lakh Scam: Targeting Dormant Balances of a Deceased Depositor

The prosecution's case detailed how Kulkarni exploited his managerial credentials and internal transaction authorization powers while presiding over SBI's Chamundipuram branch in Mysuru between May 13, 2009, and December 23, 2011. Investigators proved that the former bank executive systematically siphoned off ₹40.53 lakh from the dormant bank account of a deceased customer, the late Krishna Iyer, who had passed away in April 2005. Emboldened by undetected entries, Kulkarni diverted an additional ₹21.04 lakh directly from the bank's internal suspense and operational balances, taking the aggregate embezzled sum to ₹61.57 lakh, which was subsequently funneled through private bank accounts operated by him and his son before cash liquidations.

Internal Audit Detection, Restitution Admission, and Final Judicial Reckoning

The multi-lakh diversion came to light during an exhaustive audit and inspection initiated by senior vigilance officials of the State Bank of India. When confronted with documentary evidence and computerized audit trails, Kulkarni admitted to executing the unauthorized fund transfers and later deposited back approximately ₹62 lakh into the bank's coffers to mitigate institutional liability. However, following standard financial regulatory protocols, the bank management lodged a formal criminal complaint with the Mysuru local police, resulting in an in-depth investigation and a comprehensive charge sheet that ultimately secured Kulkarni’s conviction and imprisonment.