Karnataka’s Valmiki scam triggers tremors in Telangana too

Karnataka Public Works Minister Satish Jarkiholi’s comments that any trouble to CM Siddaramaiah would have a cascading effect on the Congress govt in Telangana, has now triggered discussions in political circles and general public here.

Hyderabad: The Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation’s Rs.187 crore scam has apparently triggering a few tremors in Hyderabad with a few companies here reportedly receiving nearly Rs.45 crore. The Congress government in Karnataka is facing flak with Sports and ST Welfare Minister B Nagendra tendering his resignation on June 6. He was one among 11 persons, including a couple of bank officials from Karnataka and Hyderabad, arrested by the Enforcement Directorate in connection with the scam. The embezzlement of Rs 187 crore in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation came to light on May 26 after the Corporation’s Accounts Superintendent P Chandrasekharan took his life and left a suicide note, in which he alleged that there was an illegal transfer of Rs.187 crore belonging to the Corporation to various accounts.

The note revealed that Rs 88.62 crore out of Rs.187 crore was illegally transferred to various accounts allegedly belonging to IT companies and a Hyderabad-based cooperative bank among others. There was uproar in the Karnataka Assembly over the issue last month. In the Assembly, Chief Minister Siddaramaiah said allegations were that ST community funds were looted. From Rs.187.33 crore, Rs.89.63 crore has gone to Andhra Pradesh and Telangana, efforts were on to recover them, he said.

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The Hyderabad Connection

As per the interim report of the Special Investigation Team probing the scam, some amount was transferred from Union Bank of India, MG Road branch on March 30, early this year. Media reports from Bengaluru cited government documents and said the money was transferred to 18 bank accounts belonging to First Finance Credit Co-Operative Society Limited in Hyderabad. This was the first level. At the second level, the money was further transferred from the 18 accounts to another 197 accounts. All the accounts are reportedly frozen with the SIT to recover the money, the reports said.

It may be recalled that Lok Sabha elections were held on May 13 in Telangana. As the money from Karnataka allegedly reached Hyderabad before the elections, there were reports that it was used extensively during electioneering. In this context, Karnataka Public Works Minister Satish Jarkiholi’s comments on Tuesday that any trouble to Chief Minister Siddaramaiah would have a cascading effect on the Congress government in Telangana, has now triggered discussions in political circles and general public here.

“If Siddaramaiah faces trouble, Telangana Chief Minister will be the next to get notices. He will also have to step down,” he said.

KTR questions Telangana Congress connection

Highlighting the nexus between those behind the huge scandal and its beneficiaries in Telangana, BRS working president KT Rama Rao on Saturday wondered as to why the Enforcement Directorate remained silent even after getting substantial leads. In a post on X on Saturday, he also asked as to why the news was suppressed in the media in Telangana even after SIT, CID and ED conducted raids here.

Pointing out at the scam’s intriguing link to Telangana politicians and businessmen, Rama Rao sought to know who were all the nine bank account holders in Hyderabad to whom the ST Corporation money of Rs. 45 crore was transferred.

“Who is the owner of “V6 Business” to which Rs. 4.5 crore was transferred? Why was the news suppressed in media circles in Telangana even after SIT, CID and ED conducted raids here? Who were running the bars and gold shops from which the cash was withdrawn during Lok Sabha elections. What’s their connection with the Congress party?” he asked, also tagging the Enforcement Directorate in the post.