BENGALURU: The Bangalore Development Authority (BDA) recently filed a recovery suit in the civil court for over Rs 250 crore in connection with the loss it suffered due to the Rs 2,982 crore mutual fund scam involving former Finance member Sandeep Dash and others.
The misappropriation of funds by BDA officials took place from 1999 to 2014 through diversion of BDA money into mutual funds without the knowledge of top authorities. Fake accounts created with the connivance of bank officials helped them carry out the racket.
Speaking to Express, a top BDA official said, “The actual loss we suffered worked out to `46 crore. But the notional loss suffered over the years works out to nearly Rs 254.26 crore. Hence, we are trying to recover this amount.”
BDA’s suit appeals for the attachment of properties and bank accounts of the accused who earned crores as the mutual funds performed well.
The racket was uncovered when BDA Commissioner T Sham Bhatt ordered an audit by the Karnataka Institute for Public Auditors.
Indian Accounts & Audits Service officer Sharada Subramaniam (spouse of Dash), former BDA Finance members M N Seshappa and B Ganganna and a second division assistant clerk Vasanth Kumar were involved in the racket.
Sandeep Dash, a 1990 batch Indian Civil Accounts Service officer was also dismissed from service in mid-2016.The BDA had already filed an FIR and one additional information report at the Seshadripuram police station in 2015 against its former employees. Dash was arrested and let out on bail.