Deccan Chronicle

Vigilance eats its words on micro-finance scam

Deccan Chronicle| Arjun Raghunath

Published on: January 13, 2016 | Updated on: January 13, 2016

The report of Rs 80.3 lakh corruption in micro-finance was just an allegation.

V. S. Achuthanandan

V. S. Achuthanandan

Thiruvananthapuram: The Vigilance and Anti-Corruption Bureau  has retracted from its statement in a Vigilance court here last week that a confidential verification had  revealed irregularities to the tune of Rs 80.3 lakh in the micro-finance scheme, it is reliably learnt.

According to highly-placed government sources, the actual finding of the confidential report was only irregularities to the tune of around Rs 7 lakh on the part of the then managing director of Kerala State Backward Classes Development Corporation.

The report of Rs 80.3 lakh corruption in micro-finance was just an allegation. This was clarified in the report given by the Vigilance to the inquiry commissioner and special court (Vigilance) here on Monday in connection with a petition filed by Opposition Leader V. S. Achuthanandan against SNDP Yogam leader Vellapally Natesan.

"It was wrongly mentioned in the confidential verification report initially sent by the VACB to the government that there was corruption to the tune of `80.3 lakh. However, a clarification report was later sent to the government stating that the actual quantum of corruption was only around Rs 7 lakh, which pertained to misuse of office by the then managing director Mr. N. Najeeb," sources told DC.

The Vigilance legal advisor had made the statement of corruption to the tune of Rs. 80 lakh considering the initial confidential verification report only. 

"It seems there was  some oversight in handing over the clarification report to the legal wing from VACB directorate," said sources.

Meanwhile, VACB sources said that the confidential verification did not go into the micro-finance scheme in detail. 

"The confidential verification was limited only to the alleged irregularities in sanctioning of loans by the corporation.  The alleged irregularities on the part of SNDP were not yet probed into," said sources.

The Vigilance court will pronounce  the judgement on Mr. Achuthanandan's petition seeking a probe against SNDP Yogam leaders on January 20.    

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