Govt suspends 2 officials of Valmiki Corporation

Bengaluru, NT Bureau: The State government on Wednesday suspended the Managing Director and an official of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd over allegations of an illegal money transfer.

The unauthorised transfer of Rs 88.62 crore from the corporation's bank account came to light after an Accounts Superintendent of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, Chandrashekhar, died by suicide leaving behind a note.

He has named the corporation's Managing Director J G Padmanabh, Accounts Officer Parashuram G Durugannavar and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that minister in charge had issued oral orders for transferring the funds.

The BJP has demanded the resignation of ST Welfare Minister B Nagendra. Padmanabh and Durgannanavar have been suspended as they allegedly overlooked the creation of a new bank account that facilitated unauthorised transfer of funds.

They have been suspended on charges of dereliction of duty, negligence and violation of financial rules. According to the government, the corporation had its savings bank account in the Vasanth Nagar branch of Union Bank of India, but another account was opened in the MG Road branch without authorisation, and funds to the tune of Rs 187 crore was moved to the new account.

Further stating that between March 5 and 23, Rs 88.62 crore was withdrawn from the MG Road branch account by anonymous persons, the suspension orders said they did not act on it.

Pointing out that the money was moved to 14 "anonymous accounts" using "forged" cheques and RTGS letters, and an unknown number was entered instead of the registered mobile number, the government said it was ensured that the intimation of the transaction did not reach the corporation's registered email address.