Bengaluru multi-crore fraud: 3 held for using development funds for private profit

Investigation revealed Dash first invested BDA money into chit funds in 1999.

Three people, including an Indian Civil Accounts Service (ICAS) officer, have been arrested by the Karnataka Criminal Investigation Department (CID) in connection with a multi-crore fraud in utilisation of Bangalore Development Authority (BDA) funds between 1999 and 2008.

The accused have been identified as ICAS officer Sandeep Dash, member of the accounts department of the BDA between 1997 to 2005; M N Seshappa, a retired joint controller (State Accounts Department) and member of accounts BDA between 2005 to 2008; and C Vasanth Kumar, a clerk in BDA.

CID officials said that officials in the accounts department of the BDA illegally invested thousands of crores of public money in chit and mutual funds and personally profited from these investments. A case was registered in connection with the claims at the Seshadripuram and the Wilson Garden police stations. The Karnataka government had then transferred these cases to the CID for further investigation.

Investigation revealed Dash first invested BDA money into chit funds in 1999. He opened temporary bank accounts at Indian Overseas Bank without BDA’s permission.

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