Bengaluru, May 30 (FN Agency) In response to allegations of a Rs 85-crore misappropriation within the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), the state government on Thursday suspended its Managing Director JG Padmanabha and Accounts Officer G Parashuram pending a departmental inquiry. The government order detailed that from March 5 to May 23, anonymous individuals withdrew substantial funds from the corporation’s bank account. Although aware of the fraudulent transfers on May 22, Padmanabha failed to inform the government until May 27, leading to his suspension. The order criticised Padmanabha for not acting promptly when Rs 86.62 crore was transferred to 14 anonymous accounts through forged documents. Additionally, the MD reported that Rs 5 crore had been returned to the corporation’s account without specifying the source of the returned funds.
The government order pointed out that Padmanabha did not submit bank statements reflecting the unauthorised withdrawals to the State Government and failed to take immediate disciplinary action against junior officers if they were responsible. The situation escalated after the suicide of Chandrashekhar, a superintendent with the corporation, who left a death note accusing senior officers, including the MD and a Minister, of misconduct. The CID is investigating these allegations. An FIR has been registered against senior officials of the Union Bank of India based on a complaint from KMVSTDCL’s General Manager. The officials named include Union Bank of India MD and CEO A Manimekhalai, Executive Directors Nitesh Ranjan, Ramasubramanium, Sanjay Rudra, Pankaj Dwivedi, and MG Road Branch Chief Manager Suchishitha Raul.
The complaint alleges that Rs 187.33 crore deposited into a Union Bank of India savings account was fraudulently disbursed using forged documents. The KMVSTDCL’s GM reported that Rs 94.73 crore was illicitly transferred to various accounts based on these forged documents. The corporation claims senior bank officials were aware of the fraudulent activities and has urged a thorough investigation and legal action against them. Investigations revealed that the misappropriated funds were transferred to a cooperative bank in Hyderabad and then moved to 14 accounts under IT firms. These accounts have since been frozen.