Valmiki Corporation scam: SIT arrested 12 people; seized assets worth over ₹49 crore

The scam came to light after the Accounts Superintendent of the Corporation Chandrasekharan P died by suicide.

South First Desk

Published Aug 05, 2024 | 5:49 PM ⚊ Updated Aug 05, 2024 | 5:49 PM

Indian money. (iStock)

A Special Investigation Team (SIT) of the Karnataka police probing the misappropriation of funds in the Maharshi Valmiki Scheduled Tribes Development Corporation said it has arrested 12 people.

In a press release, the SIT also said that it seized cash and other assets worth over ₹49 crore in relation to the eight cases registered against the misappropriation of funds.

The scam came to light after the Accounts Superintendent of the Corporation Chandrasekharan P died by suicide.

In his suicide note, he had explained in detail how the money was transferred and the role of the Corporation and the bank officials in the scam.

Also Read: A ‘scam’ that might alter the course of Siddaramaiah’s political trajectory

The case and the arrests

Initially, a case was registered in Bengaluru City High Grounds Police Station under Sections 149, 409, 420, 467, 468, and 471 of the Indian Penal Code (IPC).

On 31 May, the case was transferred to the SIT within the Crime Investigation Department (CID) of the state police. Later, seven more cases were registered in relation to the irregularities.

The people arrested in the cases are:

• JG Padmanabha, Ex-Managing Director, Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation
• Parashuram Durgannanavar, Ex-Accounts Officer, Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation
• Sathyanarayana Etakari, Chairman, First Finance Credit Co-Operative Society Limited.
• Nekkunte Nagaraj, an acquaintance of Former state minister Nagendra
• Nageshwar Rao, Brother-in-law of Nekkunte Nagaraj
• M Chandramohan, Hyderabad.
• Gadiraju Satyanarayana Varma, Hyderabad.
• GK Jagadish, Shivamogga.
• Teja Thammaiah, Bengaluru.
• Pittala Srinivasa, Hyderabad.
• Saiteja, Hyderabad.
• Khaki Srinivasa Rao, Andhra Pradesh

Also Read: Who wants the 14-hour workday in Karnataka?

Assets seized

The SIT seized ₹49,96,92,918 in the cases related to the irregularities.

• Cash recovered: ₹16,83,35,000
• Gold seized: 16.2546 kg (worth ₹11,70,33,120
• Value of cars seized: ₹4,51,19,166
• Account Officer’s Bank: ₹3,19,11,500
• Amount in frozen accounts: ₹13,72,94,132-00

The SIT also filed a preliminary charge sheet against the accused in the 3rd ACMM Court in Bengaluru and further investigation is being continued, according to the official release.

Valmiki Corporation scam involves about ₹187.33 crore where the money kept in different accounts including ₹40 crore in the government treasury was diverted towards the Union Bank of India’s MG Road branch.

Of the ₹187.33 crore, ₹88.63 crore was illegally transferred to at least 217 different bank accounts in Telangana including 18 firms.

Nagendra, who was arrested by the Enforcement Directorate (ED), is in judicial custody in connection with the case.

The Opposition BJP has accused the ruling Congress of being involved in the scam. They have alleged that the transfer of money could not have happened without the knowledge of Chief Minister Siddaramaiah.

The chief minister has rubbished the allegation and said he had no information about it.

(Edited by Muhammed Fazil)

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