Valmiki Corporation Scam: HC rejects Union Bank’s plea for CBI probe
Karnataka High Court on Wednesday dismissed a petition filed by the Union Bank of India (UBI) seeking a CBI probe into the case of diversion of funds from the Karnataka Maharshi Valmiki ST Development Corporation.
A group of people allegedly committed fraud on the bank and siphoned off the funds, allocated to the Valmiki Corporation for the welfare of scheduled tribe members, between February 21 and May 6 this year. The alleged fraud came to light only on May 24, after the corporation managing director wrote to UBI’s MG Road branch asking it to restore the funds debited to its account as it had not authorized any of the transactions that took place over this period.
In its complaint to the CBI, the bank said it had been able to recover Rs 5 crore while Rs 84.63 crore remained unrecovered from the recipients of funds from illegal transfers.
Appearing before Justice M Nagaprasanna, the senior counsels of both the State Government and the Corporation opposed the bank’s request. The power of investigation into a case rests with the state police, and the same cannot be interfered with by the Union Government, they said.
Attorney General R Venkataramani, appearing for the bank, said transferring the case from the state to the CBI was necessary to ensure integrity of the banking industry.
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