BENGALURU: The Congress government in Karnataka, led by Chief Minister Siddaramaiah, continues to face a series of scandals that have rocked its administration. While the government is already grappling with the fallout from the MUDA scandal and the illegal money transfers in the Valmiki Development Corporation, fresh allegations have surfaced regarding the Karnataka State Cooperative Society, further deepening the crisis.
The Valmiki Development Corporation scandal had already placed the Siddaramaiah government under intense scrutiny, with even a Congress MLA being arrested in connection with the case. The Enforcement Directorate (ED) has actively pursued investigations into both the Valmiki and MUDA scams, intensifying pressure on the administration. Amid these controversies, a new financial scandal has emerged involving an alleged illegal transfer of Rs 19.34 crore within the Karnataka State Cooperative Society.
The scandal came to light during a recent meeting chaired by Cooperation Minister KN Rajanna. It was revealed that from 2017 to 2024, Rs 19.34 crore, held in fixed deposits (FD) by the society, had been illegally transferred to a private account. The main accused, Ashalatha Pati Somashekhar, the in-charge CEO of the society, along with her husband and others, allegedly created fake deposit bonds for 101 FD accounts to conceal the misappropriation. Forged signatures of the society’s president were also used, further compounding the fraud.
During the meeting, Ashalatha claimed that the society’s funds were deposited in BDCC and Apex Bank. However, verification exposed the illegal transfer and the creation of counterfeit deposit bonds, leading to an official complaint. The president of the society, Raju, lodged a complaint with the Nandini Layout Police Station in Bangalore, resulting in an FIR being registered against six individuals, including Ashalatha, her husband, a BDCC manager, and an auditor.
Vijayendra Demands Siddaramaiah’s Resignation
BJP state president BY Vijayendra has demanded Chief Minister Siddaramaiah’s resignation. Speaking to the media on Friday, Vijayendra criticised the CM, stating, “The sins of Siddaramaiah are full. He has muddied his clean image with the scandals surrounding his administration. Our demand is that Siddaramaiah should respectfully step down and face the investigations.”
Vijayendra did not hold back in his criticism of the MUDA scandal either. He emphasized, “The MUDA scam is not just about 14 plots; it is a scam worth thousands of crores. The Chief Minister should step down and cooperate with the investigations instead of clinging to power.”
Highlighting the seriousness of the situation, Vijayendra noted that both the Lokayukta and the ED have initiated investigations into the scandals. “The Enforcement Directorate’s recent raids are a result of the CM’s family illegally acquiring land. Fourteen plots were allocated to his wife under dubious circumstances, and properties worth crores were purchased through brokers. We have been fighting against the corruption of the CM’s family, and now the CM has returned the 14 plots, but that doesn’t absolve him,” he asserted.
Vijayendra also accused Siddaramaiah of attempting to avoid accountability. “He never allowed discussions in the House, claiming there was no wrongdoing. But after the ED raid, he was quick to issue a letter to return the plots. This shows he has been cornered. The CM himself is the first accused in this case, and he needs to resign immediately instead of hiding behind his position,” he added.
The BJP leader went on to suggest that a more thorough investigation was necessary, advocating for a Central Bureau of Investigation (CBI) probe. He accused the CM of orchestrating attempts to close the cases and alleged bias in how the investigations were being handled. “The MUDA scam extends beyond just 14 sites. We are talking about plots worth Rs 4,000-5,000 crores being handed over to brokers. The Chief Minister is responsible for all this. Despite his attempts to save face, Siddaramaiah cannot escape from the legal scrutiny,” Vijayendra asserted.
Reflecting on the CM’s predicament, he said, “The CM has thrown mud from Kesare village, claiming to be a clean politician. But this case has shown otherwise. ED is not acting impartially, and it’s time for the CM to face the consequences of his actions. The people deserve an honest investigation.”
The fresh allegations in the Karnataka State Cooperative Society have only added to the woes of the Congress government. With the ED raids, Lokayukta cases, and now new FIRs being registered, political pressure on Siddaramaiah is at an all-time high. Opposition parties are rallying to ensure that the Chief Minister steps down, arguing that his continued leadership could obstruct impartial investigations.
While the Congress government grapples with multiple allegations of financial irregularities, the state waits for clarity on the legal outcomes. With calls for a CBI investigation gaining momentum, it remains to be seen how Siddaramaiah will navigate this turbulent political storm and whether he will continue to stand by his assertion of innocence.
