Explained: Tribal corporation official’s suicide in Karnataka and its ramifications

The suicide of Maharishi Valmiki Development Corporation superintendent P Chandrasekhar and the alleged illegal transfer of Rs 90 crore from the corporation have become a major topic of discussion in Karnataka politics, with opposition parties demanding the resignation of Chief Minister Siddaramaiah and minister B Nagendra.

On May 26, Superintendent P Chandrasekhar allegedly died by suicide at his residence in Shivamogga, leaving behind a six-page death note regarding the “illegal financial transfers” in the corporation. His death and the extensive death note have exposed a purported multi-crore scam.

Now, opposition parties, including the BJP and JD(S), are alleging that Minister for Tribal Welfare B Nagendra and Chief Minister Siddaramaiah are involved in the money transfer scandal. They are demanding their immediate resignation and a CBI investigation into the case.

This scandal has caused significant embarrassment for the state Congress government. In response, the chief minister has formed a Special Investigation Team (SIT) to investigate the case, asserting that no one will be protected in the investigation.

What is the case about?

The Maharishi Valmiki Development Corporation, a government body that plans and implements schemes for the development of Scheduled Castes and Tribes, employed P Chandrasekhar as a superintendent at its central office in Bangalore.

On May 26, Chandrasekhar allegedly hanging himself at his Shivamogga residence. In a purported six-page suicide note, he mentioned the “illegal transfer of Rs 89 crore” out of the total Rs 187.33 crore allocated for the corporation’s projects for 2024-25. He is said to have named senior officials of the corporation and Union Bank officials as responsible for the fraud.

The official’s suicide and his detailed death note have brought the alleged multi-crore scam to light.

What did the officer’s death note contain?

Chandrasekhar’s wife, Kavitha, submitted the note to the Vinobanagar police station in Shivamogga on May 27 along with a complaint. On the first page of the note, Chandrasekharan directly blamed the corporation and bank officials by name for his suicide.

He purportedly mentioned that the corporation’s Managing Director JG Padmanabh, accountant Parashuram Durugannanavar, and Union Bank MG Road branch manager Suchismita Rawal were directly responsible for his death.

He apparently also stated that the MD forcibly transferred funds from the corporation’s account, and despite his role not involving direct responsibility, the stress of the job led him to fill in the chequebook and cashbook, which he considered his mistake.

What is minister B Nagendra’s role in the case?

In his death note, Chandrasekhar apparently mentioned that the corporation MD had brought the illegal transfer of funds to the attention of the minister through his office staff. The MD had instructed him to keep the matter confidential until all the misappropriated funds were recovered.

As the corporation falls under the jurisdiction of the Nagendra, the opposition argues that he should take responsibility for the scam and resign.

Where did the funds go?

Following the official’s suicide, the department has been tracking the misappropriated funds. Chief Secretary N Manjunath Prasad wrote to the CEO of Ratnakar Bank Limited (RBL) in Hyderabad, seeking information on the funds transferred from the corporation’s account at the Union Bank’s MG Road branch in Bengaluru.

Between March 3 and 30, Rs 49.52 crore was transferred to accounts in the names of various companies. On March 30, Rs 40.10 crore was transferred to eight different accounts. Many of these companies are based in Bengaluru, and some accounts were found to have been opened under fake company names. In several cases, there was no connection between the companies and the accounts opened in their names. Some companies have already lodged formal complaints.

What steps have the government taken so far?

Upon the alleged scam coming to light, the government suspended MD Padmanabh and accountant Durugannanavar of the corporation. An SIT has been formed to investigate the case, and the team has already detained the suspended officials for questioning.

What are the Opposition’s demands?

The Opposition claims that the Congress government is involved in the multi-crore scam, in collusion with its own government in Telangana. They demand the resignation of minister B Nagendra and Chief Minister Siddaramaiah and call for a CBI investigation.

Reports suggest that out of the misappropriated amount, around Rs 30 crore was transferred to the account of a close associate of an influential leader in the Telangana Congress government. Union Bank officials have also written to the CBI, requesting an investigation, and BJP leader Basanagouda Patil Yatnal has written to Union Home Minister Amit Shah demanding a CBI probe.

(This explainer was originally published in The Federal Karnataka)