A suicide, a death note and a multi-crore scam...

The Opposition is demanding the CM’s resignation and a CBI probe into the alleged irregularities.
BJP leaders, including state unit chief BY Vijayendra, LoP R Ashoka, MLA V Sunil Kumar and others protest outside Vidhana Soudha demanding that minister B Nagendra resign from the cabinet, in Bengaluru on Thursday
BJP leaders, including state unit chief BY Vijayendra, LoP R Ashoka, MLA V Sunil Kumar and others protest outside Vidhana Soudha demanding that minister B Nagendra resign from the cabinet, in Bengaluru on Thursday Photo | Nagaraja Gadekal

BENGALURU: ST Welfare Department Minister B Nagendra resigned from the Siddaramaiah Cabinet over alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL). The Opposition is demanding the CM’s resignation and a CBI probe into the alleged irregularities.

What is the issue...

KMVSTDCL is an organisation under the Department of Tribal Welfare, meant for the welfare and development of various STs. The State Government provides funds to the corporation to implement programmes for the development of the STs. KMVSTDCL deposited Rs. 187.33 crore from various banks and the Treasury into the savings bank account at Union Bank of India, MG Road Branch, Bengaluru. It noticed numerous forged letters, forged cheques, and forged RTGS requests with fake signatures of the officers and Accounts Officer, and a forged/fake board resolution leading to unauthorised disbursements of funds from its bank account.

“Upon verification of the passbook in detail, an amount of Rs. 94,73,08,500 has been disbursed to various accounts by Union Bank of India, MG Road Branch, Bengaluru, based on the forged documents,” the KMVSTDCL GM stated in his complaint filed with police. The money was allegedly transferred to a cooperative bank in Hyderabad and from there, it was transferred to different accounts.

Superintendent of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd  (KMVSTDCL) P Chandrashekharan.
Superintendent of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd (KMVSTDCL) P Chandrashekharan.Photo | Express

How did it come out...

P Chandrashekharan, who was working as the Superintendent with KMVSTDCL at its Bengaluru office ended his life at his residence in Shivamogga on May 26. In his death note, he blamed JG Padmanabha, KMVSTDCL Managing Director, and his associates Parashurama G Durgannanavar, KMVSTDCL Accounts Officer, and bank officials. In the note, he also stated that he got a direction (an oral instruction from the minister concerned) to transfer money. Subsequently, Rs 25 crore was transferred to an account on March 4, Rs 25 crore on March 6, Rs 44 crore on March 21, Rs 43.33 crore from the state’s Treasury account, and Rs 50 crore on May 21.

Government constitutes SIT

After a case was registered in Shivamogga, the State Government suspended the corporation MD JG Padmanabha and Accounts Officer Parashuram G, pending departmental inquiry. A Special Investigation Team (SIT) headed by ADGP (CID) was constituted. KMVSTDCL General Manager filed a complaint with the police against bank officials. FIR was registered against them.

Bank files plaint with CBI

Union Bank of India filed a formal complaint with the Central Bureau of Investigation (CBI) on May 30. Three branch officials have been placed under suspension pending further inquiry. “The Bank has promptly declared the transactions in question as fraudulent when the irregularities came to light. To ensure a thorough investigation and swift identification of the culprits, we have filed a formal complaint with the Central Bureau of Investigation (CBI)..” the bank stated.

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