Today(on 23rd July), The Karnataka High Court issued a notice to the State government on a petition by Union Bank of India requesting a CBI probe into alleged fund misappropriation by the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.
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BENGALURU: The Karnataka High Court has taken a significant step in the investigation of the alleged misappropriation of funds belonging to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (Valmiki Corporation). Today(on 23rd July), the court issued a notice to the State government regarding a petition filed by the Union Bank of India, which seeks a Central Bureau of Investigation (CBI) probe into the matter.
Justice M Nagaprasanna presided over the issuance of the notice and scheduled the case for further hearing on August 7. The Attorney General for India, R Venkatramani, represented the Union Bank of India in his personal capacity and strongly advocated for a CBI investigation. He emphasized the critical importance of a thorough and impartial probe by a central agency to uphold the integrity of the country’s banking regulations.
“The Union Bank of India has requested a CBI investigation, emphasizing the importance of the central agency’s involvement due to the banking implications. The case requires a distinct approach, regardless of the prior involvement of the State investigation agency.”
– he stated.
The controversy surrounding the Valmiki Corporation funds erupted in May this year, following the tragic suicide of Chandrashekhar, the Corporation’s accounts superintendent. His death brought to light the alleged misappropriation, as he left behind a note detailing the mismanagement and unlawful diversion of welfare funds intended for the development of Scheduled Tribes.
In response to the allegations and the subsequent public outcry, the Karnataka government quickly established a Special Investigation Team to delve into the claims. Concurrently, the Enforcement Directorate (ED) launched an independent investigation, further intensifying the scrutiny on the handling of the Corporation’s funds.
According to the ED’s findings, approximately Rs.90 crore was illicitly transferred from the Valmiki Corporation’s Union Bank of India account to several unauthorized accounts. This revelation underscores the gravity of the situation and the potential ramifications on the trust and effectiveness of financial oversight within state-run organizations.
The plea for a CBI probe by the Union Bank of India underscores the need for an impartial and comprehensive investigation. The involvement of the CBI, known for its expertise in handling high-profile financial crimes, is seen as essential to uncover the truth and ensure accountability.
As the case progresses, all eyes will be on the Karnataka High Court’s subsequent hearings and the actions of the State government in response to the notice. The outcome of this case could set a significant precedent for how financial irregularities within government-run corporations are handled, particularly concerning the safeguarding of funds meant for the welfare of marginalized communities.
The next hearing on August 7.
