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News on Governance 10 ArdorComm Media Group Karnataka Government Funds Diverted: FIR Filed Against Union Bank of India Officials
News on Governance 10 ArdorComm Media Group Karnataka Government Funds Diverted: FIR Filed Against Union Bank of India Officials

Karnataka Government Funds Diverted: FIR Filed Against Union Bank of India Officials

-By ArdorComm News Network

The managing director of the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation has filed a case against Union Bank of India officials, alleging fraudulent diversion of approximately Rs 94.73 crore of the corporation’s funds. This development follows the suicide of an official who cited irregularities involving substantial sums of money.

Incident Details

  • Allegation: The MD, A Rajashekar, claims that Union Bank officials fraudulently diverted Rs 94.73 crore of the corporation’s funds to other accounts.
  • Timeline: On February 26, bank officials moved the corporation’s primary account from the Vasanthnagar branch to the MG Road branch with auditors’ and MD’s permission. Between March 4 and May 21, Rs 187.33 crore was deposited in the corporation’s account from the state treasury.
  • Discovery: The MD discovered the fraudulent transactions on May 22 when informed by the bank that documents were allegedly sent by post, which the corporation never received. Signatures were reportedly forged to transfer funds, and no transaction alerts were sent via SMS or email.

Follow-Up Actions

  • Immediate Action: The chief manager of the MG Road branch returned Rs 5 crore to the corporation on May 23.
  • Suicide Incident: On May 26, Chandrashekaran P, involved in auditing and coordinating with the bank, committed suicide, leaving a note implicating senior officials and mentioning instructions from a minister.
  • Complaint and FIR: On May 28, Rajashekar filed a complaint at the High Grounds police station in Bengaluru, accusing six bank officials of the fraud. The police have registered a case under various sections of the Indian Penal Code related to criminal breach of trust, cheating, and forgery.

Investigation and Political Reactions

  • Investigation: Home Minister G Parameshwara confirmed the detection of irregularities and mentioned that the funds were diverted to 8-10 bank accounts. The CID is investigating the case.
  • Minister’s Denial: Youth Empowerment, Sports, and Tribal Welfare Minister B Nagendra has denied any involvement, stating that no such instructions were given from his end.
  • Opposition Demand: The BJP has demanded the resignation of Minister B Nagendra, with state president B Y Vijayendra calling for a judicial probe by a sitting high court judge into the incident.

The case has drawn significant attention due to the scale of the alleged fraud and the tragic suicide of an official, highlighting serious concerns about financial governance and accountability within both the bank and the government corporation.

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