Bengaluru: In a significant development, the Criminal Investigation Department (CID) officials conducted a raid on the office of the Bhovi Development Corporation located at Visvesvaraya Tower on Tuesday, in connection with the alleged misappropriation of funds amounting to several crores of rupees. The raid, which lasted for over four hours, was part of an ongoing investigation into the financial irregularities within the corporation.
The CID officials thoroughly searched the premises, meticulously examining documents for five consecutive hours. During the raid, they seized several crucial files and a computer, which are now central to the investigation. The CID team also questioned the corporation’s staff and officials, recording preliminary statements as they delve deeper into the alleged scam.
The investigation centers around the alleged misuse of funds under the Bhovi Development Corporation’s entrepreneurship scheme and direct credit schemes. It is reported that the accused individuals, with the help of intermediaries, misled the public into providing their identity documents and bank cheques with the promise of securing loans. However, these documents were later misused, leading to illegal financial transactions amounting to millions of rupees. Cases related to this scam have been registered in both Bangalore and Kalaburagi.
The severity of the scam, involving the illegal transfer of crores of rupees, prompted the state government to transfer the case to the CID a few days ago. Preliminary investigations have already uncovered illegal activities exceeding Rs. 60 crores, with the CID officials intensifying their probe to unearth the full extent of the corruption.
In connection with the scam, P.D. Subbappa, who served as the office superintendent at the Bhovi Development Corporation from April 5, 2021, to July 8, 2022, has been arrested. He is currently in custody and undergoing interrogation. Subbappa is accused of orchestrating the theft of over 200 files, including critical documents such as accounts, cash register books, project files, and bank checks. These documents were allegedly stolen to cover up the illegal activities within the corporation.
Furthermore, the investigation has revealed that Dr BK Nagarajappa, the former general manager, and Lilavati, the former managing director of the corporation, are absconding. A manhunt has been launched to apprehend them, as their involvement in the scam is considered significant.
The scam reportedly took place during the financial year 2021-22, where loans were improperly distributed to businessmen, leading to the illegal transfer of over Rs. 10 crores. Public records were allegedly manipulated to facilitate these fraudulent transactions. To cover up the scam, Subbappa, the corporation’s superintendent, filed a complaint in Bengaluru and Kalaburagi districts, claiming that over 200 files, including accounting records and bank checks, had been stolen. However, this was later exposed as a ploy to hide the corruption within the corporation.
The state government, upon learning of these irregularities, ordered a CID investigation, which led to the arrest of Subbappa. The investigation is ongoing, with CID officials working diligently to uncover the full extent of the scam and bring all involved parties to justice.
The scam has also sparked political controversy, with Chief Minister Siddaramaiah recently raising the issue during an Assembly session. He mentioned the name of Udupi BJP MP Kota Srinivasa Pujari, who is in charge of the Bhovi Development Corporation, suggesting potential political connections to the scam. Enraged by the allegations, Srinivasa Pujari responded by writing a letter to Siddaramaiah, demanding that the case be immediately handed over to the Central Bureau of Investigation (CBI). He further warned that if there was any delay in transferring the case to the CBI, he would stage a dharna satyagraha in front of the Gandhi statue at Vidhana Soudha.
It may be recalled here that close on the scam of Valmiki development corporation , new scam has came to light .
