Bengaluru: — The Central Bureau of Investigation’s Anti-Corruption Bureau (CBI ACB), Bengaluru, has registered a major case of systematic financial fraud involving the misappropriation of ₹1,34,61,500 (over ₹1.35 crore) from 44 Post Office Savings accounts at Sargur Sub-Post Office in Mysuru Postal Division, Karnataka.In FIR No. RC0372026A0005 dated 12 March 2026, the CBI has named Shri B.S. Deepak, Postal Assistant at Sargur Sub-Post Office, as the prime accused.
The agency has also booked “unknown public servant(s) and private person(s)” for their alleged involvement in diverting the siphoned funds.The fraud allegedly took place between 16 November 2020 and 15 May 2025. The case was registered on the basis of a written complaint dated 7 July 2025 submitted by Shri Kumar Abhinit, Inspector of Post Offices, Hunsur Sub Division, Hunsur, Karnataka. An internal enquiry conducted by a team headed by Shri Chethan Uthappa T.K., Assistant Superintendent of Post Offices (R), Mysuru Division, had earlier established the massive irregularities.
According to the FIR, Shri B.S. Deepak, while working as Postal Assistant, allegedly employed a multi-layered modus operandi to siphon off public money from various savings schemes:
- Unauthorised closures and fraudulent withdrawals: He closed Senior Citizen Savings Scheme (SCSS), Monthly Income Scheme (MIS), Term Deposit (TD), and Mahila Samman Savings Certificate (MSSC) accounts without the knowledge or consent of the account holders, forging their signatures. The proceeds were transferred to the customers’ Post Office Savings Bank (POSB) accounts and then withdrawn fraudulently, again using forged signatures.
- Fake passbooks and fabricated entries: To conceal the closures, Deepak allegedly printed fake passbooks and entered fictitious transactions using Notepad and MS Word software instead of the official FINACLE core banking system.
- Manipulation of customer data: Before executing closures or withdrawals, he changed the mobile numbers registered in the FINACLE system, preventing genuine account holders from receiving SMS alerts about transactions.
- Acceptance of deposits for non-existent accounts: He accepted cash deposits from customers for new accounts, issued counterfoils or acknowledgments, but never created the accounts in FINACLE. Instead, he issued fictitious passbooks linked to other legitimate account holders.
- Unaccounted deposits: Deposits received for Savings Bank (SB), Public Provident Fund (PPF), and Sukanya Samriddhi Account (SSA) schemes were not entered in departmental records or FINACLE, but fake deposit entries were printed in customers’ passbooks to mislead them.
- Diversion of funds: The fraudulently withdrawn amounts were allegedly deposited into bank accounts belonging to other staff members of Sargur Sub-Post Office, their family members, and in some cases, outsiders, indicating possible conspiracy.
The CBI has invoked the following sections in the FIR:
- Bharatiya Nyaya Sanhita (BNS), 2023: Section 61(2) read with 316(5), 318(4), 336(3) and 340(2) — covering criminal conspiracy, forgery, cheating, criminal breach of trust and use of forged documents as genuine.
- Prevention of Corruption Act, 1988 (as amended in 2018): Section 13(2) read with 13(1)(a) — criminal misconduct by a public servant.
- Information Technology Act, 2000 (as amended in 2008): Section 66C — identity theft using computer resources.
The case has been entrusted for investigation to Shri Dilip Kumar P.S., Deputy Superintendent of Police, CBI ACB Bengaluru, under the supervision of Shri Vinayak Varma, IPS, Superintendent of Police and Head of Branch, CBI ACB Bengaluru.
This is the latest in a series of high-value fraud cases being probed by the CBI in the Department of Posts, where insiders are accused of exploiting the trust of small depositors and pensioners who rely on post office savings schemes for financial security.
The CBI has not disclosed the current status of the accused or whether any arrests have been made. The investigation is ongoing and is expected to trace the flow of funds and identify any other officials or private individuals involved.