Karnataka: Complaint filed year ago before Lokayukta on corruption, money laundering in KSOU yet to see action

A complaint filed almost a year ago with the Lokayukta Police over corruption and money laundering of several lakhs in a bank account of Mysuru-based Karnataka State Open University (KSOU) is yet to see any action.

H K Jagdish Babu, secretary of KSOU Permanent Teachers Association said he had lodged a complaint and an additional complaint with the Superintendent of Police, Karnataka Lokayukta in Mysuru in this regard on September 15, 2023, and October 25, 2023, but there has been no action till now.

“My request for a sanction under Section 17(a) of the Prohibition of Corruption Act, 1988 (Amended Act-2018) on November 17, 2023, also evoked no action, till date,” he said.

The complaint reads, "Corruption and money laundering of lakhs of Rupees has occurred in the KSOU, in a bank account (A/C No 92101003895267), in AXIS Bank, Kuvempu Nagar, Mysuru, from July 2021, handled by Sumathi R Gowda, Coordinator/Assistant Professor, KSOU, Mukthagangotri, Mysuru, who has illegally operated and also self withdrawn more than Rs 23 lakh, between December 18, 2021, to July 27, 2023, in collusion with then VC S Vidyashankar, then Finance Officer A Kadar Pasha, and then Registrar K L N Murthy."

“It was further continued in the tenure of the present VC Sharanappa V Halse, till July 27, 2023. KSOU functions as per Karnataka State open University Act, 1992, and regulations framed under the Act. The VC is the Principal Chief Executive Officer of KSOU, Registrar is the in-charge of the records and assets of KSOU and the Finance Officer is the internal treasury officer. They are the custodians of the accounts, general supervisors of the funds, and are responsible to keep a constant watch on the bank accounts and internal audit of the KSOU,” Jagdish Babu said.

“KSOU is a self-funded university and its finances are from the admission fee, exam fee and other fee collected from students. The finance, expenditure, bank accounts etc should be made and operated by the administrative office order, issued by Registrar, upon approval of VC and should be in the name, operated, and monitored by the Finance Officer, as per the KSOU Act, 1992. However on September 25, 2021, KSOU opened a bank account in the name of ‘Coordinator, External Examinations, KSOU, Mysuru’. It was handled by Sumathi R Gowda of the Computer Science Department, who was the Coordinator,” the complaint reads.

“From the date inception of the account, for more than nine months, there were no orders for opening the said account. After nine months of transaction, on July 14, 2022, then VC Vidyashankar himself issued the orders to Sumathi R Gowda, to open, transact, draw and disburse the amount, as and when required. KSOU VC is only supposed to issue approval and the orders are to be issued by the Registrar. By May 7, 2022, about Rs 94.38 lakh had been transacted in the said account,” the complaint reads.

“As per the account details, between September 28, 2021, to September 3, 2022, Rs 99,34,239 was credited and Rs 87,85,779 was debited. The transactions were from various firms like co-operative societies, milk federations and individuals, from all over Karnataka,” the complaint reads.