The state government has suspended the managing director and an official of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd over allegations of an illegal money transfer. The alleged unauthorised transfer of Rs 88.62 crore came to light after an accounts officer of the corporation died by suicide on May 26, leaving behind a note naming his seniors and top management officials of a public sector bank.
Six officials of the Union Bank of India, including its MD and CEO, have also been booked in connection with the officer’s death. The state government suspended the ST development corporation’s managing director, JJ Padmanabh, and accounts officer Parashuram G Durugannavar.
In his death note, 48-year-old accounts superintendent Chandrashekharan named Padmanabh, Parashuram and Union Bank of India chief manager Suchismita Rawal, while also saying the minister in charge had issued oral orders for transferring the funds.
The two corporation officials were suspended as they allegedly overlooked the creation of a new bank account that facilitated unauthorised transfer of funds. According to their suspension orders, they were suspended pending inquiry on charges of dereliction of duty, negligence and violation of financial rules. Union Bank of India’s MD and CEO Manimekhalai, four executive directors and the chief manager of the MG Road branch were booked for allegedly being aware of the fraudulent money transfer.
The Valmiki corporation’s account with the Union Bank of India was recently transferred from the Vasanth Nagar branch to the MG Road branch. The bank officials were booked at the High Grounds police station in Bengaluru, based on a complaint by the corporation’s general manager.
According to the FIR, the corporation’s general manager has alleged that the bank officials were aware of the illegal money transfer by their own employees and other third parties, and still failed to act. He further alleged that the bank failed to take precautionary measures despite the presence of such a large sum in their bank; hence, he said, the top management must be held liable for this lapse.
What is the case so far?
The suspension order of the officials stated that Padmanabh, despite knowing about the illegal money transfer, submitted a report to the government only on May 27, a day after Chandrashekharan died by suicide.
The state government said the bank account in the MG Road branch was opened without authorisation, and funds to the tune of Rs 187 crore were “illegally” moved to it. Between March 5 and 23, Rs 88.62 crore was withdrawn from this account by anonymous persons, said the suspension order of both officials. It added that the officials did not act on it and were, hence, being held responsible.
The order further stated that the money was moved to 14 “anonymous accounts” using “forged” cheques and RTGS letters, and an unknown number was entered instead of the registered mobile number for this purpose. The government said it was also ensured that the intimation of the transaction did not reach the corporation’s registered email address.
A report published by news agency PTI said it was found that through 14 “virtual accounts”, money went to accounts in the name of well-known IT companies and a Hyderabad-based cooperative bank. “These accounts were frozen and Rs 5 crore was returned to the corporation, and efforts are on to ensure the return of the remaining amount,” the report quoted the government.
Parashuram, meanwhile, was found to have failed in his duty in managing the bank accounts and financial transactions of the corporation, and in bringing it to the notice of higher officials, the suspension order said.
What is the Karnataka government saying?
Following Padmanabh’s suspension, the government has given additional charge to ST welfare department’s joint director KR Rajkumar as the managing director of the corporation, said official sources. But, the officer’s death by suicide has put the government in a spot with the opposition BJP demanding the resignation of ST welfare minister B Nagendra.
State home minister G Parameshwara, however, said a CID probe is on and the truth will be known from the probe. State primary education minister Madhu Bangarappa said he visited Chandrashekharan’s family on the instructions of chief minister Siddaramaiah.
“I visited Chandrasekharan’s residence, and the chief minister instructed me to visit. The government has said it will give any kind of help needed, and give justice to the family. I will cooperate as required; such an incident should not happen, the investigation is on. Let it be completed, and those who are in the wrong will be punished,” he said on Thursday.
Chandrashekaran, a 48-year-old accounts superintendent working at the Bengaluru office of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, was found dead at his residence in Shivamogga late on May 26.
The police said he left behind a note in which he mentioned the misuse of large sums of corporation funds and the names of senior officers allegedly responsible for his death. The officer, in his suicide note, accused senior officers of forcing him to open a parallel bank account to divert money from the corporation’s primary account, they said.
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