Govt won’t protect anyone in illegal money transfer case, says CM Siddaramaiah

PTI, Jun 1, 2024, 3:05 PM IST

Karnataka Chief Minister Siddaramaiah and his deputy DK Shivakumar on Saturday asserted that the state government will not protect anyone in the illegal money transfer case involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd and would take action in accordance with law.

The assertion comes hours after opposition BJP sought a CBI probe into the illegal money transfer case and demanded that Minister of Scheduled Tribes Welfare, B Nagendra be dismissed.

”We will not protect anyone… whoever it may be (involved in the case), we will take action in accordance with law,” Siddaramaiah told reporters in response to a question on a case involving Minister Nagendra and BJP seeking his removal.

The illegal transfer of money came to light after the Accounts Superintendent at the Corporation, Chandrashekhar P, died by suicide on May 26, leaving behind a death note.

It revealed the unauthorised transfer of Rs 187 crore belonging to the corporation from its bank account, and from that, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to ”well-known” IT companies and a Hyderabad-based cooperative bank.

Chandrashekhar has named the Corporation’s now suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that the ”Minister” had issued oral orders for transferring the funds.

The state government has constituted a four-member SIT team headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID) in Bengaluru, to conduct the probe.

Deputy CM D K Shivakumar maintained that the government will not protect anyone and no one will be spared.

Addressing reporters here, he said, ”The BJP is doing politics, I won’t question them. During the BJP regime too such things have happened. Basavaraj Bommai (former CM) is aware of it, everyone else also knows it… We are investigating the case, we will not spare anyone.” When pointed out that while in opposition the Congress had sought the then Minister K S Eshwarappa’s resignation following the suicide of a contractor naming him, but is not acting against its own Minister now, Shivakumar said there is no direct reference to Minister Nagendra in this case.

”If any documents or proof or any involvement is found, whatever needs to be done, the government will surely do it. The government is transparent, there is no question of sparing anyone. We will take action. We will protect the interest and safeguard the government. The money is important, our officials are trying to trace it,” he said.

The Deputy CM further said that a couple of days is required. ”After that the government will definitely take action. Some arrests have been made, actions have already been taken. The Minister has spoken to me and the CM, we are inquiring into it,” he added.

On the demand for a CBI investigation, he said there is a procedure that if more than certain crores of money is involved in a bank fraud case (Rs 3 crore in public sector banks), the case will naturally go to CBI.

”Whether we give it or not. there is a procedure, we also know that, we are ready to cooperate. They (CBI) should also probe without politics. As of now the case is not with the CBI, we are investigating,” he added.

Meanwhile, amid media reports that a bank account named after IT firm Happiest Minds Technologies Ltd, is among the “beneficiaries” of the money embezzled at the Corporation, the company in a statement clarified that the bank account does not belong to it.

”We have absolutely no connection to the bank account or the branch mentioned (RBL Bank, Banjara Hills, Hyderabad, IFSC Code RATN0000341) and this has been confirmed by RBL Bank authorities as well. We vehemently deny these malicious efforts to malign our Company’s reputation,” it said in a statement.

”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 added.