Uproar in both houses of Karnataka legislature over Valmiki Corporation scam

Bengaluru, Jul 15 (PTI) The opposition BJP on Monday tore into the ruling Congress over the Rs 187 crore scam in the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation.


Launching a blistering attack on the government, leader of opposition in the state assembly, R Ashoka said through this scam, which took the life of a sincere and honest government officer Chandrasekharan P, has exposed the 'anti-Dalit' face of the government, which calls itself a champion for the cause of Dalits.


“There used to be scams of two per cent, three per cent and 10 per cent but the Valmiki Corporation scam beats all. This is the ‘100 per cent Khata-Khat’ scam,” Ashoka said during the adjournment motion in the House.


The BJP leader’s ‘Khata-Khat’ jibe was directed at the Congress leader Rahul Gandhi.


During the 2024 Lok Sabha election campaign, Congress MP Rahul Gandhi had said if his party came to power women from the weaker section will ‘Khata-Khat’ (quickly) get Rs 8,500 per month under the ‘Mahalakshmi scheme’.


Ashoka alleged that the Accounts Superintendent Chandrasekharan died by suicide after he was taken to Goa on the pretext of junket where he was tortured, beaten up, abused and confined to his hotel room to approve the illegal money transfer.


He also claimed that a ‘video’ was also made on the officer.


“Chandrasekharan had won the best accountant award twice. He was known for his integrity. The house he lives in appears to be his ancestral home. During COVID-19 he had borrowed Rs 20 lakh for his treatment and was not been able to clear it."


Reading out the suicide note, the BJP leader alleged that this was not a suicide, but murder by a corrupt government.


He added that the family of the accounts superintendent was being harassed by not releasing the provident fund and gratuity amount.


Ashoka further said on March 30, Rs 50 crore fixed deposit of the Valmiki Corporation was opened in the Union Bank of India MG Road Branch. The same day, Rs 45 crore loan was taken at an interest rate of 7.6 per cent and minutes later, the money (Rs 45 crore) was transferred to 18 firms in Hyderabad.


He also claimed that the money was spent during the LS polls.


The Chief Minister intervened and said that only Rs 88 crore has been misappropriated in the scam and not Rs 187 crore.


Noisy scenes were witnessed in the Legislative Council too over the issue.


As BJP MLC C T Ravi tried to make preliminary submission on the issue for which they had given an adjournment notice, the ruling Congress objected to it, leading to heated exchanges between treasury and opposition benches.


Citing rules, Home Minister G Parameshwara said the matter is under investigation by SIT, CBI and ED, and it cannot be discussed, and it should not be allowed by the chair.


As there was argument between both sides on this, Council Chairman Basavaraj Horatti said he will seek Advocate General's opinion on this, and reserved his ruling for tomorrow morning.


The BJP and JD(S) were unhappy over this and trooped into the well of the House raising slogans against the government, forcing the Chairman to adjourn the House for some time.

When the House resumed after some time, the Chairman said he had consulted the Advocate General, and allowed the discussion on the issue using his discretionary powers.
He also laid down certain conditions regarding the allegations that may be leveled during the discussion.


Arguments broke out as Ravi was speaking on the issue, as ruling party MLCs reacted sharply to certain remarks made by him.

Later, Deputy Chairman M K Pranesh adjourned the House for tomorrow.

The alleged illegal money transfer scam involving the state-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd, came to light after its accounts superintendent Chandrashekhar P died by suicide on May 26, leaving behind a death note.

The note alleged unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account, and from that, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to "well-known" IT companies and a Hyderabad-based cooperative bank among others.

Following allegations against him in connection with the scam, Scheduled Tribes Welfare Minister B Nagendra tendered his resignation on June 6. He is currently under Enforcement Directorate custody.

(This story has not been edited by THE WEEK and is auto-generated from PTI)