The Special Investigative Team (SIT) investigating the alleged multi-crore scam at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation has detained the chairman of a cooperative society in Hyderabad, Telangana. This marks the third arrest made by the SIT since its establishment by the government on May 31. Reliable sources disclosed that Saryonarayana, the chairman of First Finance Credit Cooperative Society Limited, was apprehended by the investigating team in Hyderabad on Monday.
He was transferred to the city on Tuesday for further interrogation. It was previously reported that a sum of 4662 crores was incorrectly allocated to First Finance Credit Cooperative Society Limited. The unauthorized transfer of Rs.187 crore from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation was brought to light following the tragic death of accounts superintendent Chandrashekhar by suicide on May 26 at his residence in Shivamogga.
The funds were allegedly moved from the corporation's bank account at the MG Road branch of Union Bank of India to other branches of the same bank in March 2024. Additionally, Rs.89.62 crore was purportedly transferred to well-known IT companies and a cooperative bank in Hyderabad.
In a note left behind, Chandrashekhar accused G Padmanabha, the MD of the cooperative society, accounts officer Parashurama G, and Union Bank of India chief manager Suchismita Rawal of fund misappropriation, linking them to his death. Chandrashekhar stated in the note that the minister had verbally instructed the fund transfers. The state-managed corporation falls under Karnataka Scheduled Tribes Welfare Minister B Nagendra, although his name was not explicitly mentioned in the note.
Following the establishment of the SIT team led by Manish Kharlikar, Additional Director General of Police, CID (Economic Offences), Padmanabha and Parashurama G were arrested and taken into custody for investigation. The government suspended both individuals on May 29 for neglect of duty, negligence, and violation of financial regulations.