CBI takes up probe into Valmiki corporation’s financial fraud: Parameshwara

Home Minister G. Parameshwara has said that the Central Bureau of Investigation (CBI) has taken up a probe into the alleged multi-crore illegal diversion of money involving State-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd.

Home Minister G. Parameshwara has said that the Central Bureau of Investigation (CBI) has taken up a probe into the alleged multi-crore illegal diversion of money involving State-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd.

Mumbai-headquartered Union Bank of India last week filed a complaint with the CBI in connection with the embezzlement of public money of the corporation involving its M.G. Road branch here. The bank has suspended three officials.

The corporation had filed an FIR against top Union Bank of India officials for the embezzlement of ₹88 crore. Following this, the State government ordered an SIT probe into the financial scam last week.

Speaking to reporters here on Wednesday, the Home Minister said the State Cabinet would decide on handing over the case to the CBI, covering the State government departments linked to the case, once it gets a formal request from the Central agency.

Dr. Parameshwara said the CBI had taken up the case following a letter written to the agency by the bank. “There is a rule that if there is a case of bank fraud of over ₹3 crore, the CBI can suo motu probe it. So, on the basis of the bank’s letter to the CBI, they have taken up the case,” he said. The Minister said the State government would extend all cooperation to the CBI.

The Home Minister said, “We are yet to decide whether the CBI can probe the financial affairs of the corporation which comes under the Tribal Welfare Department and alleged diversion of funds to cooperative banks that come under the Cooperative Department of the State.”

“The CBI will have to write to us to seek the handing over of the probe to them (agency) and after which the government will take a decision,” he said. “The Cabinet will decide on the matter after the model code of conduct is lifted”.