Scam in Scheduled Caste Development Corporation: SIT arrests chairman of cooperative society

The alleged scam came to light after accounts superintendent Chandrashekhar died by suicide on May 26 at his residence in Shivamogga.
Representative Image.
Representative Image.

BENGALURU: The Special Investigation Team (SIT) sleuths arrested the chairman of a cooperative society based in Hyderabad.

The arrest relates to illegal transfer of alleged Rs 94.7 crore funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation to the cooperative society's bank account.

The suspect has been identified as Sathyanarayana.

Police said that he was arrested on Monday, brought to the city on Tuesday before being produced in a court.

On Monday, SIT officials raided the Corporation office in Vasanth Nagar, Bengaluru, and seized digital and paper documents related to the alleged scam.

The police have frozen the 14 bank accounts of the suspect. A team has been sent to Hyderabad for further probe.

It may be recalled that on May 31, the police arrested Managing Director J G Padmanabha and Accounts Officer Parashuram G on the outskirts of Bengaluru and produced them before the magistrate court on Saturday afternoon. The court remanded them in police custody till June 6.

The alleged unauthorized transfer of Rs 94.7 crore belonging to the the said corporation came to light after accounts superintendent Chandrashekhar died by suicide on May 26 at his residence in Shivamogga. He left behind a death note mentioning the illegal transfer and the names of the officials involved.

Meanwhile, speaking to reporters on Wednesday, Home Minister G. Parameshwara said that an FIR has been registered by the Central Bureau of Investigation (CBI) in connection with the multi-crore money transfer case of the ST Corporation. The bank had written a letter to the CBI. There is a law that a voluntary case can be registered if the scam involves more than Rs 3 crore. Accordingly, the CBI has taken up the case. He added that the state government will provide all kinds of cooperation.

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