Karnataka Finance Fraud: Opposition Demands Resignation Over Rs 187 Crore Scam

A Rs 187 crore misappropriation scandal involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation has sparked controversy within the state assembly. BJP Leader R Ashoka has demanded Chief Minister Siddaramaiah's resignation, accusing the Congress government of financial misconduct and negligence, and questioning the impartiality of the investigation.

The alleged misappropriation of Rs 187 crore from the state-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation continued to rock the assembly for the second consecutive day on Tuesday, with Leader of Opposition R Ashoka demanding Chief Minister Siddaramaiah's resignation.

The BJP leader said he held the Congress government accountable for the 'loot' at the Valmiki Corporation.

Blaming the government for the death by suicide of Valmiki Corporation's Accounts Superintendent Chandrashekhar P, which led to the alleged scam being exposed, Ashoka questioned the fairness of the Special Investigation Team (SIT) constituted by the state government to probe into it.

The ST (Schedule Tribe) community has not got the benefits due to them, as the Rs 187 crore meant for its welfare was plundered and taken to Telangana. The CM has to give the amount to the ST community beneficiaries,' Ashoka said, remarking that the money has been used for 'some people's enjoyment'.

He said the money was 'looted' through online funds transfer platforms/systems such as PhonePe, Google Pay, and RTGS.

There should be a thorough probe by the CBI and ED into this financial irregularity. As such, a huge scam wouldn't have happened without it coming to the notice of the Finance Department, he said, and as the chief minister holds the finance portfolio, he should resign assuming moral responsibility. As Ashoka demanded the CM's resignation in the assembly, those in the treasury benches entered into a heated exchange with the opposition.

The illegal money transfer came to light when Valmiki Corporations Accounts Superintendent Chandrashekhar died by suicide on May 26, leaving behind a note.

The note revealed the unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account, and it said that out of the sum, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to 'well-known' IT companies and a Hyderabad-based cooperative bank among others.

Scheduled Tribes Welfare Minister B Nagendra tendered his resignation on June 6 after allegations were made against him in connection with the scam. He is currently under Enforcement Directorate custody.

Highlighting the plight and sorry state of Chandrashekhar's family, Ashoka said the official's wife is fighting for justice despite all difficulties.

Fearing humiliations, innocent Chandrashekhar ended his life... If he had not committed suicide, the entire Rs 187 crore would have gone 'khata-khat' to Telangana, he claimed.

Pointing out that a minister is a watchman or custodian of every paisa of taxpayers money, the LoP said that the CM himself had accepted that the irregularity had taken place, and therefore neither Siddaramaiah nor the Finance Department nor the government can shrug off responsibility claiming they were unaware of the scam.

Ashoka also questioned why, despite 40 days since the scam came to light, the SIT had not issued notice to Nagendra and ruling Congress MLA Basanagouda Daddal, who is the chairman of the corporation.

He compared it with the 'quickness' shown by another SIT of the state police which is probing into allegations of sexual abuse against former JD(S) MP Prajwal Revanna, in interrogating his father and MLA H D Revanna, mother Bhavani Revanna, and BJP MLA Pritham Gowda in a linked case.

Has the SIT been formed to probe financial irregularities for a 'coverup'?, he asked.

Taking a dig at Chief Minister Siddaramaiah, senior BJP MLA Suresh Kumar said in the assembly: 'There are two things. One is SIT -- Special Investigation Team, the other is SSIT -- Siddaramaiah Shivakumar Investigation Team.' Shivakumar and Congress's MLAs took strong exception to this.

During the discussion, BJP State President and Shikaripura MLA B Y Vijayendra said it was not acceptable that the Finance department had no information about the Rs 187 crore scam.

He said the Congress government had come to power saying it would strive for the exploited downtrodden communities but misappropriated funds meant to empower them.

It is not an acceptable statement that the Finance department had no information (about the misappropriation), he said.

Vijayendra claimed that the funds of various other corporations meant for uplifting economically weak populations remained either unutilised or under-utilised.

Ruling Congress MLAs, including ministers, strongly objected to his statement.

Home Minister G Parameshwara said when a commission or any investigation agency has been probing the case, the adjournment motion should not have been taken up in the assembly.

We cannot specifically say that so-and-so minister and officers are involved when three agencies are investigating it – CBI, ED and now our Special Investigation Team (SIT), Parameshwara said.

BJP MLA V Sunil Kumar mockingly demanded that the government clarify where it spent money, 'either in Ballari in Karnataka or Amethi in Uttar Pradesh?' This led to an uproar leading to the adjournment of the house for a brief moment.