SIT Files Chargesheet in Karnataka KMVSTDC Scam, Seizes Rs 49 Crore in Assets

Bengaluru, August 6, 2024: The Special Investigation Team (SIT) has filed a preliminary chargesheet naming 12 accused and detailing the seizure of Rs 49 crore in assets in the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC) scam, an official said on Tuesday.

The chargesheet does not name former minister B Nagendra, who was arrested earlier by the Enforcement Directorate (ED) in a related money laundering case. Among those named in the SIT’s chargesheet are former KMVSTDC officials, including ex-managing director J G Padmanabha and ex-accounts officer Parashuram Durgannanavar.

Other accused include Sathyanarayana Etakari, chairman of the First Finance Credit Cooperative Society; Nekkunte Nagaraj, an associate of Nagendra; and Nageshwar Rao, Nagaraj’s brother-in-law. The allegations involve the illegal transfer of approximately Rs 94 crore from the KMVSTDC’s account in Union Bank of India to various accounts in Telangana.

The chargesheet indicates these transactions were carried out without any notification to the corporation, suggesting a deliberate attempt to conceal the fraudulent activity. The SIT’s preliminary findings have led to the registration of eight cases and the seizure of significant assets, including Rs 16.83 crore in cash, 16.25 kg of gold, luxury cars valued at Rs 4.51 crore, and bank account funds totaling Rs 13.72 crore. The extensive chargesheet spans seven volumes and 3,072 pages, charging the accused with criminal conspiracy, criminal breach of trust, and cheating under the Indian Penal Code (IPC).