The Karnataka Police CID has arrested four persons for their alleged involvement in a Rs 3.39 crore scam related to the Chief Minister’s Relief Fund (CMRF). The CID probe has found that the four accused used fake medical bills to claim money from the CMRF over several years.
Those arrested were identified as Amogappa Moratagi of Jevargi in Gulbarga, MK Kiran of Melanahalli in Tumkur, CM Nagaraj Shetty of Chowdenahalli and Shankar of Mandya.
The scam came to light in October 2015 while CMRF officials were scrutinising documents and verifying them with hospitals across the state. A deputy secretary of the CMRF filed the first complaint. As police began the probe it was discovered that the scam was spread across the state.
Nearly 54 cases were then registered for the misuse of funds to the tune of Rs 3.39 crore from the CMRF. Later, all cases were transferred to the Economic Offences Wing of the CID.
The CID has found that funds from the CMRF were drawn using fake bills and hospital admission receipts. Staff members at some hospitals were also involved in the scam, police have found.
The modus operandi of the accused involved approaching poor people with illnesses and promising them money from government funds for treatment. They would then collect their ID proofs to create fake bills in their name to make false CMRF claims. Several poor victims of the scam have come forward to become witnesses in the case, said CID officials.
The arrested suspects also managed to get letters from several ministers and legislators for grant of CMRF.