Karnataka govt. will not ‘voluntarily’ hand over Valmiki corporation scam case to CBI, says Home Minister

Amidst demand by the BJP for an investigation by the Central Bureau of Investigation (CBI) into the alleged unauthorised transfer of funds belonging to the Maharshi Valmiki Scheduled Tribes Development Corporation (MVSTDC), Home Minister G. Parameshwara on Friday said that the State government will not hand over the investigation to the CBI “voluntarily.”

Amidst demand by the BJP for an investigation by the Central Bureau of Investigation (CBI) into the alleged unauthorised transfer of funds belonging to the Maharshi Valmiki Scheduled Tribes Development Corporation (MVSTDC), Home Minister G. Parameshwara on Friday said that the State government will not hand over the investigation to the CBI “voluntarily.”

While the BJP has been demanding a CBI inquiry, the Union Bank of India (UBI), which is at the centre of controversy as its officials allegedly connived to make the transfers to unauthorised accounts, on Thursday approached the CBI to investigate the case.

“We will not voluntarily hand over the case to the CBI. The case will be handed over to the CBI if there is financial irregularity of over ₹100 crore. The CID has started investigation now and it will ascertain if the scam is over ₹100 crore. Let us see what needs to be done in the future,” the Home Minister told presspersons here on Friday. He said the matter would be discussed with the Chief Minister if needed.

It is alleged that of about ₹187.33 crore belonging to the corporation from the financial years 2023-2024 and 2024-2025, about ₹94 crore has been transferred to 14 accounts belonging to IT companies and a Hyderabad-based cooperative society on the basis of forged signatures and documents. The scam came to light after Accounts Superintendent of the corporation P. Chandrashekaran was found dead and in a note he blamed two corporation officials and a bank official for the financial irregularities.

Meanwhile, stepping up pressure on the government, the BJP has sought the resignation of Chief Minister Siddaramaiah and arrest of the Minister for Scheduled Tribes Welfare B. Nagendra besides handing over the investigation to the CBI in the wake of the Union Bank of India approaching the CBI for a probe.

“The State government is directly responsible for the irregularities and the money has been transferred to fake accounts without even preparing an action plan. The Minister should be arrested,” former Deputy Chief Minister C.N. Ashwath Narayan told presspersons here.

Urging the government to make public the identity of persons whose accounts received money belonging to the corporation, he took exception to the FIR not mentioning the names of the Minister and officials involved in the unauthorised transfer of money.