Five senior executives of the Union Bank of India have approached a sessions court in Bengaluru for anticipatory bail in connection with the multi-crore Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC) scam. The Scheduled Tribes Welfare Minister B Nagendra resigned on June 6, after he was accused of being part of the scam.
According to TOI, the bank officials filed for bail following the registration of a case at the High Grounds police station in Bengaluru on May 28. The police have named the bank’s Managing Director and CEO, A Manimekhalai, as the prime suspect. Other senior officials named in the case include executive directors Nitesh Ranjan, S Ramasubramanian, Sanjay Rudra, and Pankaj Dwivedi. Additionally, the bank’s MG Road branch chief manager, Suchismita Raul, has also been booked.
The scam came to light after an accounts superintendent from Shivamogga working at KMVSTDC died by suicide and left a note accusing officials of embezzling money from the corporation.
Read: Why Karnataka Minister Nagendra is under fire for a death and a multi-crore scam
A Rajashekar, the chief manager of the corporation filed a complaint in Bengaluru stating that over Rs 94 crore of government funds were illicitly transferred out of the corporation's official account, with only about Rs 5 crore being reversed.
In response, the state government constituted a Special Investigation Team (SIT) led by Additional Director General of Police (Economic Offences) Manish Kharbikar. The SIT has arrested five individuals in connection with the scam, though they have not been named in the FIR filed at High Grounds police station and are not bank employees, TOI report.
Manimekhalai, Ranjan, Ramasubramanian, Rudra, and Dwivedi have now petitioned the 60th Additional City Civil and Sessions Court for bail. The public prosecutor has filed an objection to their petition, and the court has scheduled the next hearing for June 10.
In light of the scandal, the Union Bank of India has suspended its MG Road branch's chief manager Suchismita, deputy branch head Deepa D, and credit officer V Krishnamurthy, citing dereliction of duty and their alleged involvement in the scam.
The Central Bureau of Investigation (CBI) has also registered an FIR after Union Bank of India filed a complaint. On Thursday, June 6, Home Minister G Parameshwara announced that the state cabinet will soon decide whether to transfer the investigation to the CBI for further scrutiny. The same day, Scheduled Tribes Welfare Minister B Nagendra resigned.