A Mysuru court has sentenced former State Bank of India (SBI) chief manager Anirudh Vasantrao Kulkarni to one year of rigorous imprisonment after finding him guilty in a case involving the diversion of ₹61.57 lakh from a deceased customer's account and an internal bank account.
Kulkarni had served as chief manager of SBI's Chamundipuram branch in Mysuru. The court also imposed a ₹50,000 fine and ordered additional compensation to the bank in connection with the case.
How Was ₹61.57 Lakh Diverted?
According to the prosecution, the transactions took place between May 13, 2009, and December 23, 2011, when Kulkarni was serving at the branch.
Investigators found that ₹40.53 lakh had been withdrawn from the account of Krishna Iyer, who had died on April 7, 2005. A further ₹21.04 lakh was allegedly taken from an internal bank account.
The combined amount of ₹61.57 lakh was transferred into accounts belonging to Kulkarni and his son, Nandan Kulkarni, according to the prosecution.
The case therefore involved both a deceased customer's account and funds belonging to the bank itself.
How Was the Irregularity Discovered?
The transactions came to light after SBI's vigilance department received an anonymous complaint in December 2011 alleging irregularities at the Chamundipuram branch.
An internal inquiry was subsequently conducted by senior bank officials. The issue received further attention when the legal heirs of Krishna Iyer approached the bank to withdraw money from his account under a court direction and discovered that funds had already been withdrawn.
The case highlights the role that strong Internal Audit and banking controls can play in identifying unusual transactions and safeguarding customer and institutional funds.
What Happened After the Investigation?
Following the internal inquiry, a police case was registered against Kulkarni in 2012. He was arrested during the investigation and was later released on bail.
During the court proceedings, the defence cited Kulkarni's age, family responsibilities, previous record and cooperation with the proceedings. The defence also pointed out that he had repaid approximately ₹62 lakh to the bank after the irregularities were discovered.
Police subsequently filed a charge sheet, and the case proceeded before the First Additional Senior Civil Judge and Chief Judicial Magistrate Court in Mysuru.
Why Did Repayment Not End the Case?
The court did not treat the repayment of the money as a reason to eliminate criminal liability.
The prosecution's case was that the unauthorised withdrawals had already taken place and that returning the money after the irregularities were detected did not erase the alleged criminal conduct.
After considering the evidence and arguments, the court convicted Kulkarni under Section 409 of the Indian Penal Code and sentenced him to one year of rigorous imprisonment. It also imposed a ₹50,000 fine.
Court Orders Compensation to Bank
Along with the imprisonment and fine, the court directed that part of the fine be paid to SBI as compensation.
The judgment brings the long-running case to a sentencing stage more than a decade after the transactions took place.
The case also demonstrates how banking vigilance, transaction monitoring and internal control mechanisms can help identify irregularities involving customer accounts and institutional funds.
Investigation and Accountability in Banking
The case began with an internal complaint and subsequent vigilance inquiry before moving into a criminal investigation and court proceedings.
While the money was reportedly repaid, the court ultimately considered the criminal allegations separately from the financial recovery.
The sentencing marks the conclusion of the trial at the Mysuru court level, subject to any further legal proceedings available to the parties.