MoS Karandlaje urges Shah to initiate detailed probe into Valmiki corporation scam

BENGALURU: Union Minister of State Shobha Karandlaje has appealed to Union Home Minister Amit Shah to direct central agencies to thoroughly investigate the illegal transfer of funds from the state-owned Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.

Karandlaje also highlighted the death by suicide of the Accounts Superintendent of the corporation, Chandrasekharan P, which brought the scam to light.

In his suicide note, Chandrasekharan alleged that a sum of Rs 187 crore belonging to the corporation was illegally transferred. This includes Rs 88.62 crore moved to various accounts of some IT companies and a Hyderabad-based cooperative bank, according to official sources.

Karandlaje, who is an MP from Karnataka's Lok Sabha constituency of Bangalore North, noted that Chandrasekharan’s suicide may be linked to the intense pressures and potential threats he faced in relation to the scam.

“The loss of Mr Chandrashekaran is a grievous blow, and his death underscores the urgent need for a transparent and thorough investigation into the factors leading to his untimely demise,” she said in a letter to Shah.

The minister also said there were serious allegations implicating Union Bank in facilitating or overlooking the financial irregularities associated with the Valmiki Corporation.

“It is imperative to scrutinise the role of the bank in managing and processing the funds that were allegedly misappropriated.”

“A formal complaint has already been lodged with the CBI and this investigation must be pursued with the utmost diligence and integrity,” Karandlaje said in her letter.

She requested Shah for “a comprehensive investigation by the relevant authorities into the Valmiki Development Corporation scam, ensuring that all individuals and entities involved are held accountable”.

Karandale asked the Home minister to facilitate a thorough and independent inquiry by the CBI into the role of Union Bank and other financial institutions implicated in the scam.

“I request you to ensure justice and provide support for the family of Chandrasekharan, acknowledging the distressing circumstances that led to his tragic suicide and strengthen oversight mechanisms to prevent such malfeasance in the future, ensuring robust monitoring of funds allocated for developmental projects,” the minister said in her letter.

Following the suicide, Congress MLA B Nagendra resigned as the Tribal Welfare Minister.

The government formed a Special Investigation Team which questioned Nagendra and Corporation chairperson Basanagouda Daddal on Tuesday.

Meanwhile, central agency Enforcement Directorate on Wednesday raided several locations in Karnataka, Andhra Pradesh and Telangana allegedly linked to Nagendra and Daddal. The searches continued on Thursday as well.

The SIT has so far arrested 12 people in connection with the case, including the managing director and accountant of the Valmiki Corporation.