Valmiki Corp scam: Karnataka Minister Nagendra to resign, says Deputy CM Shivakumar

“The Chief Minister after discussing with the Congress high command, will take a call,” he said.

Chief Minister Siddaramaiah earlier on Thursday, said he will take a decision on seeking resignation of Nagendra, after talking to the Special Investigation Team (SIT) formed to probe the multi-crore scam, and discussing with senior Cabinet colleagues.

The scam

The illegal money transfer issue, involving Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, came to light, after its accounts superintendent, Chandrashekhar P, died by suicide on 26 May, leaving behind a death note.

The note revealed the unauthorised transfer of ₹187 crore belonging to the state-run Corporation— which comes under the administrative control of Nagendra’s department — from its bank account, and from that, ₹88.62 crore was illegally moved to various accounts allegedly belonging to “well-known” IT companies and a Hyderabad-based cooperative bank.

Chandrashekhar has named the Corporation’s now-suspended Managing Director JG Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that the “Minister” had issued oral orders for transferring the funds.

Related: Karnataka official dies by suicide, alleges superiors pressured him to illegally transfer ₹85 crore

FIR filed by Union Bank of India

Siddaramaiah and Shivakumar, who is also the state Congress President, are said to have held a meeting after news broke about the CBI filing an FIR based on a complaint filed by the Union Bank of India, sources said. They reportedly summoned Nagendra, and explained the circumstances asked him to step down, and also assured him that he would be reinstated if his name was cleared from the charges.

Mumbai-headquartered Union Bank of India last week filed a formal complaint with the CBI in connection with embezzlement of money belonging to the Corporation involving its MG Road branch. It had also suspended three officials.

The Corporation had filed an FIR against top Union Bank of India officials with the police, over embezzlement of ₹88 crore.

The CBI has taken up a probe into the case, Home Minister G Parameshwara said on Wednesday, while adding that the Cabinet will take a call on handing over to the CBI investigation covering the state government departments linked to the case, once it gets a formal request from the central agency.

The state government last week constituted an SIT headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID) in Bengaluru, to conduct the probe.

BJP demands resignation

A delegation of BJP leaders led by its state President B Y Vijayendra and the Leader of Opposition in the Assembly, R Ashoka petitioned the Governor, and urged him to seek the Chief Minister’s and Nagendra’s resignation.

“A big corruption scam has happened in the state, where the money kept for the development of ST community has been illegally transferred to more than eighteen fake bank accounts in Hyderabad, this cannot happen without the approval of the Finance department,” Vijayendra said.

“The Chief Minister also holds the charge of the Finance Department, and such a big scam would not have happened without it coming to his notice, just the Minister’s resignation will not do justice, the Chief Minister is also responsible, and his resignation should also be sought,” he said.

Also Read: CBI takes up probe into Karnataka illegal money transfer case involving state-run Cooperation

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