The FIR has named seven people, including the manager of Union Bank of India, retired employees, contractual staff and private persons. (Photo generated using AI)The police in Karnataka’s Ballari have registered a case after insiders in the Karnataka Industrial Areas Development Board (KIADB) allegedly siphoned Rs 16.17 crore over more than three years in collusion with bank employees and private individuals.Suman D Pennekar, Superintendent of Police, Ballari, said that the complaint will be transferred to the Criminal Investigation Department (CID) as the alleged scam exceeds Rs 10 crore, even though primary investigations were underway.According to the complaint filed by S M Kolalagi Mallappa, executive engineer at KIADB’s zonal office in Ballari’s Mundragi industrial area on March 19, the fraud was carried out between October 15, 2022, and February 20, 2026, through the board’s current account held at Union Bank of India.The FIR has named seven people, including the manager of Union Bank of India, retired employees, contractual staff and private persons.According to the complaint, Santhosh Kumar HV, who was engaged as an outsourced employee of KIADB to handle the office’s bank transactions, allegedly forged the signatures of two former executive engineers — J H Shridhar and S Janardhan Naik — on blank cheques.These forged cheques were allegedly used to transfer funds illegally into the private bank accounts of four people — Shruthi K T, Baby Ayisha, Rakesha Badagal, and Vijayalakshmi.Another accused named Nazeer Ahmed, a retired KIADB employee who had previously served as the office’s sole authorised bank liaison, allegedly facilitated Santhosh Kumar’s access to banking operations and enabled the fraudulent transactions.Story continues below this adDuring Shridhar’s tenure, Rs 12,19,01,185 was allegedly siphoned across multiple cheques. During Naik’s tenure, a further Rs 2,48,69,333 was transferred. During Mallappa’s tenure, Rs 1,50,28,398 was allegedly misappropriated — bringing the total alleged fraud to Rs 16,17,98,916.The complaint further alleges that the Union Bank of India branch manager and staff processed these transactions despite the cheques bearing forged signatures, and have therefore been named as accused.The police have registered a case under sections 316(2),316(4),316(5),318(4),336(2),336(3),340(2), and 3(5) of Bharatiya Nyaya Sanhita (BNS).