Karnataka tribal corporation scam: Associate of credit cooperative society chairman held in Hyderabad
The SIT probing the multi-crore Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation scam has arrested 11 people so far.
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The police identified the accused as Saiteja, who worked as an associate of Satyanarayana, the chairman of First Finance Credit Co-Operative Society Limited in Hyderabad. (Representational photo)The Special Investigation Team (SIT) probing the multi-crore Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC) scam arrested an associate of the chairman of First Finance Credit Co-Operative Society Limited from Hyderabad on Monday.
The police identified the accused as Saiteja, who worked as an associate of Satyanarayana, the chairman of First Finance Credit Co-Operative Society Limited in Hyderabad. A police source in the CID said that Saiteja was allegedly involved in transferring money that was moved from KMVSTDC from the accounts of the finance credit cooperative society.
“While the money that has gone into the accounts has been frozen and recovered, a huge sum of money was withdrawn. We are yet to recover it. As the money trail was through bank transactions, it is not hard to track,” the official added.
The police have arrested 11 people and seized about Rs 14 crore in connection with the alleged swindling of Rs 94 crore from KMVSTDC. Several Union Bank of India officials and government officials have also been booked.
The misappropriation came to light after P Chandrashekaran, a corporation official involved in auditing and coordinating with the Union Bank of India, died by suicide on May 26, leaving behind a six-page note detailing the fraud and the people involved.
The Karnataka government has constituted an SIT headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, to investigate the case. The Central Bureau of Investigation has also registered a case based on a complaint from the Union Bank of India.
Following the scam, B Nagendra resigned from the post of state tribal welfare minister.
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