Bengaluru, In a significant development, the Bengaluru police have lodged an FIR against officials of Union Bank of India following allegations of fraudulent diversion of Rs 94.73 crore from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation. This comes in the wake of a suicide by one of the corporation’s officials, who cited financial irregularities involving the bank.
The Allegations
A Rajashekar, the managing director of the corporation, filed the complaint on Tuesday. The FIR details how on February 26, bank officials obtained permission from auditors and the managing director to transfer the corporation’s primary account from the Vasanthnagar branch to the MG Road branch for maintenance purposes.
From March 4 to May 21, the corporation’s account received Rs 187.33 crore from the state treasury. Due to the Model Code of Conduct in place for the Lok Sabha elections, there was no formal communication from Union Bank of India about these deposits, according to the FIR.
Discovery of the Fraud
On May 22, when the corporation inquired about their account status, the bank claimed that passbooks, cheque books, and other documents had been sent to the corporation’s office by post. However, Rajashekar’s complaint asserts that these documents were never received.
Further investigation revealed that signatures had been forged, and Rs 94,73,08,500 was illegally transferred to various accounts without any notification to the corporation. No SMS alerts or emails were received regarding these transactions.
Immediate Actions
Upon discovering the discrepancies, the corporation flagged the issue to the chief manager of the MG Road branch on May 23, who then transferred Rs 5 crore back to the corporation. The corporation requested CCTV footage, but the bank failed to provide it.
Tragically, on May 26, Chandrashekaran P, an official involved in auditing and bank coordination, died by suicide. His note accused senior officials of coercing him to open a parallel account to divert funds, allegedly following oral instructions from a minister.
Legal Proceedings
Following these events, the corporation sent a letter to Union Bank of India’s deputy general manager (east) on May 27, demanding the return of the siphoned funds. On Tuesday, Rajashekar filed a complaint at the High Grounds police station in Bengaluru, naming six bank officials: Manimekhalai, Nitesh Ranja, Rama Subramaniam, Sanjay Rudra, Pankaj Dwivedi, and Suchishitha Raul, among others.
The FIR charges these officials under various sections of the Indian Penal Code for criminal breach of trust by public servants, cheating, forgery, and other related offenses.
Official Statements and Investigation
Home Minister G Parameshwara confirmed that preliminary investigations revealed the money was diverted to 8-10 bank accounts. When questioned about Youth Empowerment, Sports, and Tribal Welfare Minister B Nagendra’s alleged involvement, Parameshwara stated that the minister has denied any role, insisting no such oral instructions were issued by him. The Criminal Investigation Department (CID) is continuing its investigation into the case.
Conclusion
The diversion of Rs 94.73 crore from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation has raised serious concerns about financial oversight and integrity within banking operations. As the investigation unfolds, authorities are under pressure to ensure accountability and restore public trust in the financial management of government funds.
