Valmiki Corporation scam: Govt to recover Rs 85 cr, says Siddaramaiah

The Karnataka CM also listed out BJP’s scams and questioned the Modi govt.

Bengaluru: The government is in the process of recovering Rs 85.25 crore embezzled at the ST Development Corporation, Karnataka Chief Minister Siddaramaiah said Friday, while slamming BJP over corruption and listed out 21 scams when the saffron party was in power.

Siddaramaiah was replying to the debate in the Assembly on the scam at the Karnataka Maharshi Valmiki ST Development Corporation, in an address laced with political attacks on BJP whose members were protesting in the well of the House.

“Ours is not BS Yediyurappa’s, Basavaraj Bommai’s or Narendra Modi’s government to let go of those who looted. We will not compromise with corruption,” Siddaramaiah said amid the din.

Siddaramaiah said his government’s special investigation team (SIT) has arrested 12 persons in connection with the embezzlement.

“This (embezzlement) seems like a conspiracy of officials and staff at the Union Bank of India and the Corporation as well as private fraudsters,” Siddaramaiah said, without getting into whether or not former minister B Nagendra was involved. “Since investigation is going on, it’ll be wrong to zero in on any person."

According to Siddaramaiah, out of Rs 89.53 crore embezzled, authorities are in the various stages of recovering Rs 85.25 crore.

At a news conference later, Siddaramaiah explained that Rs 89.63 crore was transferred to 18 accounts in Hyderabad. “From those 18 accounts, the money went to another 199 accounts. In total, there were 217 accounts.”

In the Assembly, Siddaramaiah asked BJP: “How much money have you recovered in scams that took place during your tenure?”

The CM pinched the BJP by bringing up the case of JG Padmanabha, the suspended MD of the ST Corporation. “He was suspended in 2017-18 too for a similar scam at the Ambedkar Development Corporation. But your (BJP) government gave him a clean chit. Wasn’t it BJP that gave him immunity to carry out a bigger loot,” he said.

Siddaramaiah argued that the Income Tax department should have hauled up the Union Bank of India over such large transactions during the Lok Sabha polls.

“If the previous two chief ministers had reined in these thieves, or had the Modi government dealt with crooked bank managers, would such cases get reported in the country?” Siddaramaiah said.

Karnataka, the CM said, saw several bank frauds in the last 5-6 years. “Under whom do nationalised banks and crooked managers come? Isn’t it Union Finance Minister Nirmala Sitharaman? Ultimately, under Modi?”

Siddaramaiah claimed that the BJP wanted to tarnish his image and project the government as anti-SC/ST. "But I assure people...we'll spend every rupee provided to SC/STs meaningfully," he said. "And, all of BJP's scams will be investigated."