The State Bank of India (SBI) has notified the police of a man who the bank says forged a letter of credit (L/C) to obtain around US$350,000.

The accused, Shrikanth Madappa Nayak, is said to have opened an account at the SBI branch in Kudatini.

Ghost company

Nayak opened the account on 18 November 2011 in the name of Veera Ganapathi Enterprises (VGE).

The accused allegedly said the business was involved in the export of metals, but it turned out to be a non-existent company.

Forged documents

Nayak presented an L/C apparently issued by a branch of the Punjab National Bank.

The L/C documents appeared to show that VGE was trading with the Ashok Trading Company, which had already placed a deposit for a metals purchase from Nayak's supposed company.

Failed checks

The accused was also asked to submit a confirmation letter from the Punjab National Bank to validate the L/C, which he allegedly forged.

Despite several checks, SBI sanctioned the L/C and ultimately paid the proceeds to the accused.

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