The Karnataka High Court on Tuesday issued a notice to the State government on a petition filed by Union Bank of India seeking a Central Bureau of Investigation (CBI) probe into the alleged misappropriation of funds of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (Valmiki Corporation).
Justice M. Nagaprasanna issued the notice and scheduled the matter for further hearing on August 7.
Attorney General for India R. Venkatramani appeared personally for the Bank and advocated for a CBI probe into the issue, citing the importance of upholding the country’s banking regulations.
“The Union Bank of India approached this Court seeking an investigation by the CBI. The central agency stepping in is crucial in the interest of banking ramifications. The case needs to be looked at differently, and it does not matter that the State investigation agency has stepped into it earlier,” he stated.
The alleged scam involves the misappropriation of Valmiki Corporation funds, which came to light in May this year after the Corporation’s accounts superintendent, Chandrashekhar, died by suicide at his residence, leaving behind a note alleging misappropriation of welfare funds.
Following this, the Karnataka government constituted a Special Investigation Team to probe the allegations, while the Enforcement Directorate (ED) also began a separate investigation.
According to the ED, approximately ₹90 crore was illegally transferred from the Valmiki Corporation’s Union Bank of India account to several unauthorized accounts.