4 min readBengaluruJun 1, 2024 06:06 PM IST
First published on: Jun 1, 2024 at 12:29 PM IST
The investigation into the siphoning of Rs 94.73 crore of government funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation has revealed that all the money was diverted from the corporation in one day and was transferred to 15 fictitious accounts, of which nine were created on the same day.
Documents accessed by The Indian Express show that on March 31, the money was transferred to fictitious accounts opened in RBL Bank (formerly Ratnakar Bank), Hyderabad, in the names of reputed organisations.
According to the Special Investigation Team (SIT) investigation, on March 31, with the financial year ending, Rs 50 crore was transferred from the treasury to the corporation’s primary account with Union Bank of India. The account already held Rs 187.33 crore at the time.
A board meeting was held on the same day where it was decided that that Rs 50 crore would be saved as a fixed deposit for 12 months. On the same day, a Rs 45 crore loan was availed by showing the Rs 50 crore fixed deposit as security.
“All these transactions have happened in a single day. Besides bank officials, there were a lot of people within the corporation who have been involved,” a police officer said.
The new bank accounts were opened consecutively. “Even a small-time thief would have attempted to have a foolproof plan, but in this case, the money was siphoned brazenly. There are clear transactions and a document trail,” a police officer who is part of the investigation said.
The misappropriation came to light after P Chandrashekaran, a corporation official involved in auditing and coordinating with Union Bank of India died by suicide on May 26, detailing the fraud and the people involved in a six-page note he left behind.
The controversy over Chandrashekaran’s death saw the BJP demanding the resignation of Scheduled Tribes Welfare Minister B Nagendra, alleging that he was involved in the conspiracy, an allegation he denied. While the corporation Managing Director A Rajeshekar lodged a complaint against six bank officials, the bank said in a statement that it has filed a complaint before the Central Bureau of Investigation (CBI).
Karnataka Home Minister G Parameshwara said the state would not transfer the case to the CBI. “If there is a bank fraud above Rs 100 crore, the case is registered by the CBI.
A police officer said that an influential politician has used the money for real estate deals. “The money was siphoned using benami accounts and was withdrawn with benami names to buy land in Karnataka to develop the layout,” the officer alleged.
In a statement to Indian Express, Happiest Minds Technologies Private Limited said that it has no connection to the bank account or to the branch mentioned with Rathnakar bank (RBL bank).
“This deliberate attempt to link our company to such activity is a blatant fabrication. We have always upheld the highest standards of business ethics and corporate governance. We are deeply disappointed that our name has been erroneously dragged into this matter. We are confident that a thorough investigation will reveal the truth and expose those responsible for these false and baseless accusations. We are also pursuing all legal avenues available to us to protect our Company’s reputation,” it said in this statement.
On Saturday, two officials from the corporation, former MD J J Padmanabh, and accounts officer Parashuram G Durugannavar were taken into SIT custody.
The 15 accounts to which the money was transferred
The misappropriation came to light after P Chandrashekaran, a corporation official involved in auditing and coordinating with Union Bank of India died by suicide on May 26, detailing the fraud and the people involved in a six-page note he left behind. (Representational image/File) 
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