BENGALURU: Is financial probity a crime for this government? The Karnataka State Women’s Development Corporation’s move to suspend its former managing director Pushpalatha H for alleged dereliction of duty in surrendering Rs 101 crore accumulated in the corporation’s kitty over the years to the State Finance Department has backfired.
With the Finance Department finding no dereliction of duty, the Department of the Personnel and Administrative Reforms (DPAR) has scuttled the government’s move to suspend Pushpalatha H, a KAS officer, now serving as chief manager with Karnataka State Tourism Development Corporation (KSTDC).
Two other officers who were suspended, G Indiramma and Puspalatha KS, have secured a stay from Karnataka Administrative Tribunal (KAT).
For a government which has been losing sheen over various corruption charges, including resignation of minister B Nagendra in the alleged Rs 187 crore scam in the Karnataka Maharshi Valmiki ST Development Corporation Limited (KMVSTDL) and resignation of Bhovi Development Corporation chairman over bribery allegations, this is an another blow.
Sources say that the suspension drama was initiated at the instruction of Minister of Women and Child Development, and Disabled and Senior Citizens Empowerment Lakshmi Hebbalkar.
On Aug.1, disciplinary action was initiated by the Women and Child Welfare Department against G Indiramma, former chief manager, administrative officer Puspalatha K S and Pushpalatha H.
‘Accused’ officials failed to implement dept projects
The Women and Child Welfare Department had sent the recommendation with the minister’s approval to the DPAR to suspend Pushpalatha H from service. It mentioned that without obtaining approval, guidance or clear opinion from the department, Pushpalatha H transferred Rs 101,63,19,054 to the Finance Department. The ‘accused’ officials had failed to implement the projects of the department which amounted to serious dereliction of duty, it noted.
But the DPAR on Sept.8, following the Finance Department’s opinion, wrote to the department secretary clarifying that there is no need to take action against the officers since the Finance Department had found no dereliction of duty on the part of the three officials.
By then, on August 11, Pushpalatha H had approached the State Women’s Commission, saying the department’s recommendation to suspend her from service had affected her personal and public life. She sought action against the present MD of the corporation, N Mahesh Babu, and also BH Nishchal, joint director, ICDS (Integrated Child Development Services), who is the Officer on Special Duty to the minister. Commission chairman Dr Nagalakshmi Choudhary on August 18 wrote to the department secretary to take action and file a report.
Sources say many questions remain unanswered over the accumulation of money in the bank accounts of the corporation. As per rules the money accumulated should be surrendered to the Finance Department. It is not clear whether Pushpalatha H was shunted out of the corporation for surrendering the money or she did it realising that she, who had served five years in the department, would be transferred, said sources.
After a slew of alleged scams in boards and corporations, the Finance Department had instructed officials to surrender surplus funds in bank accounts, sources said.
Minister Hebbalkar told TNIE that former MD Pushpalatha and the other officers had allegedly misappropriated the rent paid against the office of the corporation which was housed in a private complex. “The concerned secretary will look into the issue and take further action,” she said.