The Special Investigation Team (SIT) probing the multi-crore irregularities in the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC) has submitted its preliminary chargesheet, detailing the arrest of 12 individuals and the recovery of assets and cash amounting to over Rs 49.96 crore. However, the SIT did not name former Tribal Welfare Minister B Nagendra in the chargesheet. Nagendra has been arrested by the Enforcement Directorate (ED) in the same case.
The extensive charge sheet, comprising 3,072 pages, was filed before the III Additional Chief Metropolitan Magistrate (ACMM) Court on Monday, August 5. Among those charged are: JG Padmanabha, ex-MD of KMVSTDC; Parashuram Durgannanavar, the former accounts officer; Sathyanarayana Etakari, chairman of First Finance Credit Co Society Limited; Nekkunte Nagaraj, an acquaintance of ex-minister Nagendra; and Nageshwar Rao, Nagaraj's brother-in-law.
The charges against them include IPC Sections 120B (criminal conspiracy), 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant, banker, merchant, or agent), 420 (cheating and dishonestly inducing delivery of property), 465 (forgery), 468 (forgery for the purpose of cheating), and 471 (using as genuine a forged document or electronic record).
The KMVSTDC complaint alleges that corporation officials forged signatures and illegally transferred approximately Rs 94 crore to various bank accounts in Telangana through the corporation’s account in Union Bank of India. The First Information Report (FIR) also mentioned that the corporation did not receive any notifications of these transactions, either via SMS or the registered email ID.
The SIT said that they have seized Rs 6.83 crore in cash, 16.2546 kg of gold valued at Rs 11.70 crore, cars worth Rs 4.51 crore, and a bank balance of Rs 3.19 crore belonging to an account officer, and frozen accounts containing Rs 13.72 crore.
The scam came to light after P Chandrashekharan, a corporation official involved in auditing and coordinating with Union Bank of India, died by suicide on May 26. He left behind a six-page note detailing the fraud and the individuals involved. Following the scam's exposure, Minister Nagendra resigned from his post, and was subsequently arrested by the ED.