Karnataka: Panchayat Raj Minister on a crusade, unearths Rs 4,500-crore scam in his ministry

BENGALURU: In a shocking revelation rural development and panchayat raj minister H.K. Patil disclosed on Tuesday that funds in excess of Rs 4,500 crores, meant for projects in rural areas, were diverted to bank accounts by officers of the department over the last five years.

Mr Patil, who received the final inquiry report of senior IFS officer Mr Punati Sridhar, told the media that he would seek an investigation into the scam. So far, money deposited in banks without spending on projects was around Rs 1,335.68 crore, while another Rs 3,008 crore of Karnataka Rural Infrastructure Development Limited had been invested in non-reconciled accounts. In organisations like Karnataka Rural Water Supply Board, cash books were not maintained, and over Rs 58.61 crores of lapsed projects were not surrendered to the government, Mr Patil added.

Of Rs 1,335.68 crore in RDPR department, Rs 505 crore was traced to long-term deposit accounts of over two years. The officials had opened multiple accounts for same projects for depositing these funds so far, and Mr Punati had identified 1128 such accounts. The accounts were created in all types of banks, including public sector, private banks, joint sector and scheduled banks, Mr Patil added. Such diversion of fund of the department commenced in 2009-10.