Valmiki Development Corporation Scam: Accused Satyanarayan Varma Alleges Foul Play by CID

Bengaluru: Startling revelations have come to fore in connection with the multi-crore Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC) scam, with Satyanarayan Varma, one of the accused in the case, alleging foul play by CID to protect influential and powerful people linked with the case. 

Varma has also alleged that he was made to sign on blank papers. Meanwhile, Union Home Minister Amit Shah responded to a letter written by BJP MLA Basanagouda Patil Yatnal who requested for a CBI enquiry into the case. 

Amit Shah has given a short reply stating that he has received his letter dated June 1. CBI is already conducting parallel investigation on the basis of complaint filed by Union Bank of India. The Special Investigation Team (SIT), formed by the state govt to probe the alleged irregularities in the 89-crore scam, has made recovery to the tune of Rs 50 crore.  

The SIT has seized Rs 20 crore in cash and gold bars while Rs 30 crore belonging to the corporation, which is in RBL bank, has been frozen. The pending amount to the tune of Rs 39 crore is yet to be recovered by the SIT. 

Meanwhile, the Enforcement Directorate (ED) has also stepped in to investigate the alleged Valmiki development corporation scam. The ED had recently questioned former MD Padmanabh and former accounts manager Parshuram. The probe agency is preparing to approach the court to obtain a warrant to grill the accused.  

On the other hand, the CBI is investigating lapses by Union Bank of India. The CBI is looking into discrepancies by former employees of Union Bank of India's. After CBI stepped in, an FIR was also filed against former employees of the Valmiki development corporation.  

What is Illegal Money Transfer Case?

The multi-crore scam involves the alleged diversion of funds from the KMVSTDC bank account to other accounts in Telangana. So far, over 10 people have been arrested for swindling approximately Rs 94 crore.

The illegal money transfer issue, involving Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, came to light, after its accounts superintendent, Chandrashekhar P, died by suicide on May 26, leaving behind a death note. The note revealed the unauthorised transfer of Rs 187 crore belonging to the state-run Corporation -- which comes under the administrative control of Nagendra's department -- from its bank account, and from that, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to "well-known" IT companies and a Hyderabad-based cooperative bank.

Chandrashekhar named the Corporation's now-suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal in the note.