Bengaluru: The Crime Investigation Department (CID) has decided to depute financial experts and accountants to assist in the investigation of economic offence cases in Karnataka, officials said.
The department has appointed four professionals for a speedy investigation of over 700 cases registered so far in the Economic Offence, Depositor Fraud Investigation, and Financial Crime branches of the CID, they added.
Among these, 210 cases fall under the Karnataka Protection of Interest of Depositors in Financial Establishments Act (KPIDFE) and the Banning of Unregulated Deposit Schemes Act, 2019. Investigating such cases has proven challenging, particularly in complex financial crimes like the multi-crore embezzlement schemes in the Bitcoin and banking sectors, where tracking the source of money transfers has hindered progress, officials added.
The CID aims to enhance its efforts in cracking money laundering networks by bringing on board these four financial experts on a contract basis. These experts will assist in solving intricate cases, they added.
Economic offence cases are on the rise across the state. Recently, a Rs 74.89 crore fraud was uncovered at the Gokak Mahalakshmi Urban Co-operative Bank in Belagavi, prompting the registration of a KPIDFE case. Belagavi SP Bhima Shankar Guled has requested a CID investigation into the matter.
According to senior CID officials, in cases involving fraud exceeding Rs 10 crore, the CID registers and investigates the case under the directive of the state government or the courts. So far, 1,130 cases, including economic offences, have been registered. Charge sheets have been submitted to the court in 750 cases, of which 600 pertain to economic offences.
CID Director General of Police MM Salim stated, "Four professionals, including financial experts and auditors, are being assigned full-time as part of the special economic offence investigation team. They will focus on reporting banking irregularities, tracking money transfers across numerous bank accounts, and tracing the source of Bitcoin transactions, which will help accelerate investigations."
The CID has also formed a Special Investigation Team (SIT) to probe high-profile multi-crore frauds, such as those involving the Valmiki Development Corporation and Bitcoin scams that have rocked Karnataka.
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