The Lokayukta Special Court has denied anticipatory bail to eight officials of the Dr. B. R. Ambedkar Development Corporation in connection with a multi-crore scam involving diversion of welfare funds meant for Scheduled Caste (SC) women’s self-help groups.
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BENGALURU: In a development in an alleged multi-crore welfare scam, the Special Court for Lokayukta Cases has rejected anticipatory bail pleas filed by eight officials associated with the Dr B R Ambedkar Development Corporation, including several retired officers. The case pertains to the alleged misappropriation of crores of rupees meant for Scheduled Caste (SC) women and their self-help groups.
Rejecting the bail petitions, Special Judge K M Radhakrishna made strong observations on the growing menace of corruption. The court pointed to the involvement of not only public servants but also what it described as “invisible personalities of highhandedness” operating behind the scenes.
“Financial frauds and scams of this nature, with the fearless involvement of corrupt public servants and people’s representatives, are burning the entire system. Corruption has become universal with no fear of law,”
the judge observed.
The court warned that unchecked corruption poses a serious threat to social welfare and India’s growing economy.
The accused officials allegedly used registration numbers of genuine self-help groups to divert welfare funds into the accounts of fake women’s self-help groups, resulting in the misappropriation of crores of rupees between 2020 and 2023.
The petitioners include:
- Vijay Kumar – Retired District Manager
- Chandra K V – Former District Manager
- Akshata – District Manager and Taluk Development Officer
- Keshava Murthy – Retired Superintendent Officer
- Arun Kumar, Mahadevi Bai, Neelamma – Taluk Development Officers
- Vijayalakshmi – Retired Taluk Development Officer
All were associated with the Dr. B. R. Ambedkar Development Corporation, Bengaluru district.
The accused denied the allegations and argued that they had already been exonerated by a disciplinary authority on June 19, 2025, following an inquiry conducted by a retired district judge. They also pointed out that:
- A private complaint by the same complainant had earlier ended in a ‘B’ report (closure)
- The Lokayukta had closed proceedings against four accused in related allegations
However, the court held that these closures do not carry significance at the current stage, given the prima facie evidence presented.
Accepting the prosecution’s argument, the court emphasized the need for custodial interrogation to uncover the larger conspiracy, including the role of mediators and unidentified influential individuals.
“The gravity and seriousness of the alleged offences and the manner in which public funds appear to have been misused must be viewed seriously in the interest of true beneficiaries and the public at large,”
the judge said.
Case Background
The case was registered by the Lokayukta police under provisions of the Prevention of Corruption Act and the Indian Penal Code (IPC), based on a complaint filed by R Gururaj, a resident of R S Palya, Bengaluru.
According to the complaint, officials conspired with mediators, fabricated documents, created fake self-help groups, and illegally diverted welfare funds meant exclusively for SC women’s empowerment schemes.
