Bengaluru: The Siddaramaiah-led Congress government has been dealt a severe blow after the Department of Personnel and Administrative Reforms (DPAR) rejected a charge sheet against senior KAS officer Pushpalatha in the controversial case of returning Rs 101.63 crore of unspent funds to the state treasury. The move has put Women and Child Development Minister Lakshmi Hebbalkar in a tight spot, raising serious questions about her judgment, motives, and credibility.
The Women and Child Development Department, under Hebbalkar, had framed a detailed charge sheet accusing Pushpalatha, then Managing Director of the Karnataka State Women’s Development Corporation, of dereliction of duty and financial irregularities. The minister herself had approved the action, painting the officer as negligent and responsible for depriving beneficiaries of crucial welfare schemes.
But in a stunning reversal, the DPAR has now given the officer a clean chit, stating in an official note dated September 8 that “no negligence” was committed. Instead, the officer had merely acted according to the Finance Department’s directions to remit idle funds, thereby avoiding financial penalties on the corporation.
The development has not only embarrassed Hebbalkar but also cast doubts over whether the charge sheet was motivated by personal vendetta or internal political pressure.
The Rs. 101.63 crore dispute
At the heart of the controversy is a massive sum of Rs. 101.63 crore that remained unspent in the corporation’s bank accounts across multiple financial years. As per Finance Department rules, such unused funds, along with interest accrued, had to be promptly returned to the state government.
Pushpalatha oversaw the process of remitting the idle funds, including deposits, accrued interest, and repayments under microcredit schemes, directly to the treasury. While this technically ensured compliance, the Women and Child Development Department accused her of bypassing administrative approvals and violating financial propriety.
The charge sheet alleged she failed to maintain rent files properly when shifting the office to Krishi Bhavan and sanctioned additional rent without due diligence, thereby causing “loss to the exchequer.”
The department also charged that by not channeling funds through the Administration Department, she undermined the original purpose of the corporation and deprived eligible beneficiaries.
DPAR contradicts ministry
The DPAR’s rejection of the charge sheet, however, paints a completely different picture. Its note pointed out that failure to return the money would have led to stoppage of further grants including staff salaries by the Finance Department. In other words, the officer acted in the government’s best financial interests, not against them.
This contradiction has turned into a political embarrassment, with critics calling out the minister for targeting an officer without solid grounds. Opposition parties have seized the moment, branding the Congress government as vindictive, directionless, and internally divided.
The controversy gained further traction after Pushpalatha filed a written complaint with the Karnataka State Women’s Commission, alleging mental harassment following the charge sheet. The commission sought an explanation from the government in August, compelling the DPAR to re-examine the case.
By siding with the officer, the DPAR has not only undermined Hebbalkar’s move but also signaled that bureaucrats cannot be penalized for following financial codes.
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