Ballari: The Rs 16 crore financial irregularity unearthed in the Ballari zonal office of the Karnataka Industrial Areas Development Board has once again put the spotlight on governance concerns under the Indian National Congress government in Karnataka, with the opposition alleging a pattern of recurring scams across departments.
The latest case, involving alleged misappropriation of over Rs 16 crore through forged cheques and illegal bank transactions, comes at a time when the state government is already facing heat over multiple high-profile controversies, including the Valmiki Corporation scam, the MUDA scam, irregularities linked to the Karnataka Public Service Commission, and allegations of commission practices in the Public Works Department (PWD).
According to police officials, the KIADB fraud occurred between October 2023 and February 2026, during which funds were siphoned off in phases from an official account. The complaint names seven accused, including a former contract employee and officials of a private bank, raising serious concerns about internal controls and financial oversight mechanisms within government-linked bodies.
The scam reportedly came to light during an internal audit, after Executive Engineer SM Kolalagi noticed discrepancies in financial transactions. Investigations have revealed that forged signatures of senior officials were used to clear cheques, even after instructions were issued to halt such payments. The involvement or negligence of banking officials has further deepened suspicions around systemic lapses.
This development has provided fresh ammunition to opposition parties, which have been consistently attacking the Congress government over what it terms a “series of scams” since it came to power.
The Valmiki Corporation scam, involving alleged diversion of funds meant for welfare schemes, had already sparked outrage, with accusations of misuse of public money intended for marginalised communities. Similarly, the MUDA scam involving irregularities in land allotment in Mysuru had raised questions about the transparency of urban development bodies.
Further, controversies surrounding recruitment processes in the KPSC had triggered protests among job aspirants, who alleged a lack of fairness and transparency in government hiring. Adding to the list are repeated allegations of “commission culture” in the PWD, in which contractors claim bribes are demanded for project clearances and payments.
Against this backdrop, the KIADB scam is being viewed not as an isolated incident but as part of a broader pattern of alleged administrative failures. Critics argue that the recurrence of such cases points to weak monitoring systems and a lack of accountability within key institutions.
“A complaint has been filed at the APMC police station alleging misappropriation of crores of rupees in the Ballari zonal office of the Karnataka Industrial Areas Development Board. Seven persons, including a former contract employee and a private bank manager along with staff, have been named in the case,” said Dr Suman D. Pennekar, Ballari district SP.
“The alleged fraud took place between October 15, 2023, and February 20, 2026, during which funds were transferred in phases from the department’s bank account. Fake signatures of officials were used and office cheques were misused to divert large sums of money. A contract employee Santosh and others are suspected to be involved, and an investigation is under way,” she said.
“There are also suspicions regarding the role of a private bank’s officials and staff. Despite instructions not to clear certain cheques, the amounts were still encashed.
“A case has been registered at APMC police station under sections 420 (cheating), 468 (forgery for the purpose of cheating), 471 (using forged documents as genuine), and 409 (criminal breach of trust) of the IPC, along with relevant provisions of the BNS, and further investigation is in progress. As the amount involved exceeds ₹15 crore, steps are being taken to transfer the case to CID for detailed investigation,” she added.
