Bengaluru: The Maharshi Valmiki Scheduled Tribe Development Corporation (MVSTDC) is finding itself embroiled in a financial misappropriation scandal, with new revelations surfacing each day. Government action has ensued, with two corporation officers suspended for dereliction of duty and non-compliance with financial regulations, a move instigated by Union Bank’s involvement in the matter.
An FIR has been lodged against six officials amid discussions hinting at verbal instructions from the departmental minister regarding the transfer of corporation funds to alternate accounts. Suspicions linger as it is suggested that the funds were channeled to IT companies and a cooperative society in Hyderabad via 14 virtual accounts, potentially linked to financing Telangana elections.
Despite mounting pressure, Karnatak home minister G Parameshwar and rural development minister Priyank Kharge stand behind minister Nagendra, assuring that investigations will unveil the truth.
MVSTDC managing director JG Padmanabha and account officer Parasuram G Durgannavar face suspension over allegations of negligence and financial misconduct. An FIR at Highgrounds police station cites unauthorised transfers totaling Rs 94.73 crore, implicating Union Bank’s CEO and executives, among others.
MD Padmanabha alleges forgery of his and his accountant’s signature, facilitating illegal transfers to 14 bank accounts. Upon discovery, he promptly initiated investigations, froze implicated accounts, and began the restitution process, returning Rs 5 crore to the corporation’s account while pursuing recovery of the remaining sum.
The revelation of funds redirected to neighboring state accounts amid Lok Sabha elections raises suspicions of election-related interference. Unauthorised overdrafts, forged documentation, and clandestine transfers to Hyderabad-based IT companies underscore the extent of malpractice.
The scandal’s complexity deepens with each revelation, prompting urgent scrutiny into the corporation’s operations and the involvement of financial institutions.
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