Valmiki corporation case: Karnataka HC directs CBI to submit details of probe conducted so far on FIR registered based on Union Bank of India’s complaint

High Court of Karnataka directs CBI to submit details of multi-crore misappropriation case involving UBI officials, BJP leaders involved.

The High Court of Karnataka on Friday directed the Central Bureau of Investigation (CBI) to submit details of the probe conducted so far in the first information report (FIR) registered by it on the complaint lodged by Union Bank of India (UBI) on multi-crore misappropriation of funds belonging to the State-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. using the accounts maintained in one of the branches of the bank in Bengaluru.

Justice M. Nagaprasanna passed the order on a petition filed by BJP leaders, Basanagouda Patil Yatnal, Ramesh Jarkiholi, Arvind Limbavali, and Kumar Bangarappa.

Appearing for the petitioners, advocate Venkatesh Dalwai told the court that the CBI had not conducted any investigation in the case even though the FIR was registered way back in June on the UBI’s complaint.

The UBI had lodged the FIR with the CBI as some of the officials at its branch were found to be involved in the transfer of crores of rupees from the corporation’s account to various other accounts based on instructions from officials of the corporation. As the misappropriated amount exceeded ₹50 crore, the bank, as per the mandate of the Reserve Bank of India, has to register a complaint with the CBI.

Citing the apex court’s verdict on the need for monitoring certain investigations by the High Courts, the advocate requested the court that it is a fit case for monitoring by the High Court as the CBI has failed to start the investigation in such a serious case.

However, CBI’s Special Public Prosecutor P. Prasanna Kumar told the court that the agency was waiting for the orders of the High Court on the UBI’s petition, in which the bank had sought transfer to the CBI the investigation into a separate FIR registered by the State police on the misappropriation of funds in the Valmiki corporation.

The SPP also told the court that the CBI had now commenced the investigation as the High Court on November 13 rejected the UBI’s petition for transfer of the State’s FIR to the Central agency. Further hearing on the petition was adjourned till December 12.