As speculation over the continuation of Minister for Scheduled Tribes Welfare B. Nagendra in the Cabinet persisted, with the demand for his resignation raised by the BJP in connection with the ₹94-crore scam at the Maharshi Valmiki Scheduled Tribes Development Corporation, his Cabinet colleagues came to his defence on Thursday.
BJP workers staged a dharna in front of the Chief Minister’s residence here seeking the Minister’s resignation.
The scam became public after accounts superintendent of the corporation Chandrasekaran P. ended his life at his residence in Shivamogga on Sunday.
He had named the now suspended corporation managing director J.G. Padmanabh and accounts officer Parashuram G. Durugannanavar, besides Union Bank of India (UBI), M.G. Road branch, chief manager Suchismita Raul to be part of the scam.
It is alleged that of the about ₹187.33 crore deposited in the UBI, about ₹94 crore had been moved to 14 accounts belonging to IT companies in Ratnakar Bank and a Hyderabad-based cooperative bank using forged signatures and documents. The BJP has been saying that the money had been moved to unauthorised accounts based on “oral instructions from the Minister”.
Home Minister G. Parameshwara admitted that there was a reference in the death note to the Minister’s alleged “oral instructions”, but nothing could be said about it until investigation was completed.
“The investigation will cover charges that money was transferred to bank accounts of IT firms,” he said. The Home Minister visited the house of the deceased in Shivamogga. He promised that those responsible for his death would be dealt with firmly.
According to multiple government sources, though Chief Minister Siddaramaiah and Deputy Chief Minister D.K. Shivakumar held discussions on the issue, it is likely that they will wait for a preliminary report before any action is initiated on the Minister’s resignation. The CID is currently probing the case.
While the BJP, citing the instance of the Congress demanding the resignation of the then BJP Minister K.S. Eshwarappa, sought the removal of Mr. Nagendra from the Cabinet, Dr. Parameshwara and Mr. Shivakumar came to his defence, stating that the two instances were different and not comparable.
In 2022, Mr. Eshwarappa, who was Rural Development and Panchayat Raj Minister in the BJP government, had to resign after Santosh Patil, a contractor named him in a note before ending his life.
“The Chief Minister has taken the case seriously and we are investigating. Unwarranted allegations do not deserve a response. If the allegations are proved, we will take strict action against all those involved,” the Deputy Chief Minister told reporters here.
When his attention was drawn to Mr. Eshwarappa’s case, the Deputy Chief Minister said: “These are two different cases. In this case, there is no direct allegation against Mr. Nagendra. This is not a small scam, the government is investigating.”
Asking the Opposition to have patience, Rural Development and Panchayat Raj Minister Priyank Kharge said: “Let us wait for 15 days, we will get a preliminary report. Why is the Opposition anxious? Officials at all levels will not deal with financial aspects based on oral instructions. The Finance Department has laid down rules for all financial transactions.”
For election funding: Bommai
The former Chief Minister Basavaraj Bommai on Thursday claimed that ₹94 crore transferred from Union Bank of India to unauthorised accounts in Hyderabad was used for election funding during the Lok Sabha polls. “If the investigation has to be transparent, it has to be handed over to the CBI. As per the rules, any financial irregularity over ₹10 crore reported in a nationalised bank should be handed over to the CBI for probe. While the Minister claims that he did not give oral instruction, the deceased officer has mentioned Minister B. Nagendra’s name.”
Responding to this, Home Minister G. Parameshwara said it cannot be deemed truth just because an allegation is being made by the Opposition. “It can only be ascertained by investigation and action will be taken if it is found to be true,” he added.
UBI files complaint with CBI
In the centre of the controversy over unauthorised transactions of over ₹94 crore that belonged to the Maharshi Valmiki Scheduled Tribes Development Corporation, the Union Bank of India (UBI) on Thursday filed a formal complaint with the Central Bureau of Investigation (CBI) for a “thorough investigation” even as it placed three officials under suspension.
The development comes close on the heels of the corporation complaining with the High Grounds police here over the fraudulent transactions in the bank following which the police filed an FIR against six bank officials — the chief executive officer and managing director, four executive directors, and the chief manager of the bank’s M.G. Road branch.
The Mumbai-based UBI in a release said, “The bank has promptly declared the transactions in question as fraudulent when the irregularities came to light. To ensure a thorough investigation and swift identification of the culprits, we have filed a formal complaint with the CBI. Additionally, three branch officials have been placed under suspension pending further inquiry.”
