Former ST Welfare Minister B Nagendra
Credit: DH Photo
Bengaluru: The Special Investigation Team (SIT) probing the alleged multi-crore scam at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation has summoned former Scheduled Tribes Welfare Minister B Nagendra and corporation chairman Basanagouda Daddal.
Sources in the SIT confirmed to DH that both Nagendra and Daddal have been issued notices to appear before the investigators on July 9. The source said that it was a routine investigation procedure as Daddal is the corporation’s chairman and Nagendra was the ST welfare minister.
It is alleged that Rs 94.5 crore was illegally transferred from the corporation’s account. The source said that measures to recover the money is under way. The SIT has frozen 197 bank accounts used to illegally transfer money and has so far seized a total of Rs 14 crore.
So far, the SIT has arrested 11 people in connection with the case, including Satyanarayana, Chairman of First Finance Credit Co-Operative Society Limited, and JG Padmanabha, the suspended MD of the corporation.
The alleged scam came to light when the corporation’s accounts superintendent, Chandrashekhar, died by suicide on May 26 at his residence in Shivamogga.
He left behind a note alleging misappropriation of the welfare funds and blamed his death on Padmanabha, Parashurama G, the Accounts Officer, and Union Bank of India Chief Manager Suchismita Rawal. He had also mentioned the word “minister” in his note.
Following this, the Karnataka government constituted an SIT to probe the alleged multi-crore scam at the corporation. As these developments unfolded, ST welfare minister B. Nagendra resigned from the cabinet.