Glitch allows man to spend Rs 3 cr on ATM-debit card


A technical glitch in the computer systems of Indian Overseas Bank (IOB) allegedly allowed a 24-year-old Vijayawada man to spend over Rs 3 crore on two ATM-cum-debit cards in India and Australia over nine months. He was ultimately arrested by the CBI, and was recently given bail by a Vijayawada court.

Tejo Bhaskar Yalavarthy, a student of business administration in Australia, had opened an account in Vijaywada in 2010. Between September 6, 2010 and May 31, 2011, he allegedly made 3,692 transactions on two cards — the second card having been issued to him after the first stopped working — drawing cash and making purchases in India and Australia, worth a total Rs 3.18 crore.

A "technical failure" apparently allowed Yalavarthy to carry out the transactions undetected even though his account did not have that kind of money. A CBI officer said IOB failed to relay the stop-transaction code to VISA for transactions made in Australia, or to immediately reconcile them with its records.

After IOB complained, CBI registered a case of cheating and criminal conspiracy against Yalavarthy on January 6 this year. He had reportedly fled Australia in 2011 after transactions made on the cards were dishonoured. During searches of his premises, CBI found laptops, high-end cameras and iPods allegedly purchased on the cards, a CBI spokesperson said. Several chargeslips were also allegedly recovered.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.