Two years after Comptroller and Auditor General (CAG) detected a scam in the Bangalore Metro Rail Corporation Ltd. Managing Director Pradeep Singh Kharola, who spoke about the fraud for the first time on Friday, admitted that there was “criminal intent” in diversion of funds.
The CAG, in 2013, found that Sandeep Das, BMRCL’s Executive Director (Finance), had invested over Rs. 3 crore in a private investment company during 2005-06. The official had diverted BMRCL funds to a mutual fund.
Refusing to divulge more details, Mr. Kharola said a complaint had been registered at the Wilson Garden police station two months ago and investigation was on.
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However, Wilson Garden police are yet to start the investigation though they have already registered a case of cheating against the official. Police said that a case had been registered against Sandeep Das, the former BMRCL official, who had allegedly invested over Rs. 3 crore in a private company during 2005-06 without intimating the officials concerned.
Police claimed that the case was now in the “documentation stage”. “We are collecting relevant documents that are essential before going ahead with the investigation,” a senior police official said.
Meanwhile, former Chief Minister H.D. Kumaraswamy on Friday said that the worst part was that the official’s investment in a private company had got eroded to some extent due to market fluctuations.
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Raising the issue in the Assembly during the discussion on the State Budget, he said the official had got a transferred to the Bangalore Development Authority soon after causing losses due to BMRCL. He maintained that the official was trying his old ways even in the BDA by diverting its funds to his personal account and investing in mutual funds.