BJP MLA’s son arrested in bribery case was suspended for Rs 55 cr financial irregularity in 2017

In the 2017 case, Prashanth was serving as the deputy accounts officer of the Karnataka Rural Infrastructure Development Ltd when he was suspended after Rs 55 crore belonging to KRIDL deposited in a bank was found missing. Along with Prashanth, the then KRIDL chief finance officer Veeranagouda Patil and the then finance superintendent Shankarachari were also suspended pending investigation.

Moreover, officials said norms were violated during the selection of the bank branch in Mangaluru. Prashanth was responsible for finalising the banks where the deposits were to be made, they added.

According to an FIR filed in Surathkal Police Station in October 2017, Rs 20 crore was deposited at the Kulai Branch of Indian Overseas Bank on August 23 and Rs 35 crore a week later. “As soon as money was transferred, those involved opened a current account. A fake deposit certificate was sent to the government and the whole money disappeared within a few days,” a senior official said.

The case was transferred to CID for investigation in 2017. Apart from the CID probe, a departmental inquiry was also initiated against the KRIDL officials. The Rural Development and Panchayat Raj Department, KRIDL’s parent department, also probed the case, sources said.

A file was submitted to the government around a year ago, seeking the inclusion of Prashanth’s name in the chargesheet filed in connection with the case. “Prashanth was suspended in connection with the case and was then reinstated. When a file was submitted to the government seeking permission to include Prashanth in the chargesheet around a year ago, his name was dropped from the list at the last stage,” a top official told The Indian Express.

The Department of Personnel and Administrative Reforms (DPAR) approves sanctions for prosecution against government officials. In Karnataka, DPAR is handled by the chief minister.

The government, however, was able to recover the money following complaints to the Ministry of Finance and top officials of the bank.