Sitharaman on Valmiki scam: Is it Congress's ‘Nyay’ to siphon off SC/ST money?

Referring to the ₹187 crore scam in the Valmiki scam, the FM accused Karnataka CM Siddaramaih of concealing facts and putting the blame on Centre

Update: 2024-07-28 11:38 GMT
Union Finance Minister Niramala Sitharaman addresses a press conference at the state BJP office, Malleswaram, in Bengaluru, on July 28, 2024. Photo: PTI


Referring to the ₹187 crore scam in the Karnataka Maharshi Valmiki Scheduled Tribe Corporation, Union finance minister Nirmala Sitharaman hit out at Chief Minister Siddaramaiah asking him whether it was ‘Nyay’ (justice) to siphon off money belonging to the tribal Valmiki community.

Also, Sitharaman accused Siddaramaiah of concealing facts in the ₹187 crore Valmiki scam, which included the illegal transfer of ₹88 crore, and trying to pass the blame on to the central government because bank officials of a nationalised bank were involved.

No protection, said FM

On Siddaramaiah’s charge that the Union finance minister should be held accountable because banks were involved, Sitharaman said, “He can say that because he is used to talking like this…That’s so irresponsive. You have your minister resigned. You have your people saying that the money has been siphoned into private accounts.”

The minister said that action has already been taken as a first step against the conniving bank officials and further action will be taken against them.

"No protection will be offered to them for sure," she asserted.

However, she wanted to know, “A minister had to resign under whose oversight? Attempt to deny, attempt to shift blame, or to say that no scandal has taken place. It’s SC/ST money. Whose money was taken away – Valmiki community’s. Is there no sense of outrage?”

Where is 'Nyay' (justice)?

“They (Congress) talk about ‘Nyay’ (justice) during election campaign. Is this Nyay for the SC/ST communities?” Sitharaman said.

During the Lok Sabha election, the Congress had the slogan ‘Ab Hoga Nyay’ to do justice for downtrodden communities and to enact policies for their upliftment.

Stating that the bank is already on the job of taking action against the erring officials, the FM asked Siddaramaiah how the minister involved in the scam and the chief minister who holds finance portfolio did not stop the bank from illegally transferring money.

“You denied the whole thing, your minister did not even resign. And regarding the money which has gone into the private accounts, you go to the assembly to say it’s not ₹180 crore or ₹140 crore, it’s only some ₹80 crore. You are concealing it, sir. This is the outrageous thing that is happening particularly with the SC/ST money,” the FM said.

The Valmiki scam

₹187.33 crore of the Valmiki Corporation kept in different accounts, including ₹40 crore in the government treasury, is said to have been diverted towards the Union Bank of India’s MG Road branch in the scam.

Of the ₹187.33 crore, ₹88.63 crore was illegally transferred to at least 217 bank accounts in Telangana including that of 18 firms.

Former Karnataka minister B Nagendra, who was arrested by the Enforcement Directorate, is in judicial custody in connection with the case.

The scam came to light after the Accounts Superintendent of Valmiki Corporation Chandrasekharan P died by suicide.

In his suicide note, he explained in detail how the money was transferred and what role the corporation and the bank officials had played in the scam.

The Opposition BJP has accused the ruling Congress of being involved in the scam. It has alleged that the transfer of money could not have happened without the knowledge of Siddaramaiah, who heads the finance ministry.

The chief minister has rubbished the allegation and said he had no information about it. 

(With inputs from agencies)

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