BJP leaders move Karnataka High Court seeking CBI probe into Valmiki Scam

Four BJP leaders, including MLAs Basangouda Patil Yatnal and Ramesh Jarkiholi, have moved the Karnataka High Court for a probe by the Central Bureau of Investigation (CBI) into the alleged misappropriation of funds of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (Valmiki Corporation).

The petition was filed by Yatnal, Jarkiholi, and BJP leaders Arvind Limbavalli and Kumar Bangarappa after the High Court dismissed a similar petition filed by the Union Bank of India.

On November 22, single-judge Justice M Nagaprasanna issued notice on the plea and sought the State’s and the CBI’s response by December 12 this year.

Senior Advocate Venkatesh Dalwai appeared for the petitioners.

In their plea, Yatnal and the others have claimed that there is “every possibility” of the Karnataka Special Investigation Team (SIT) trying to “cover up” the conspiracy and hence, it is imminent that the ongoing probe be transferred to a central agency.

On November 13 this year, Justice Nagaprasanna had dismissed a plea by the Union Bank of India for a CBI probe into the alleged scam after holding that Section 35A of the Banking Regulation Act, which confers powers on Reserve Bank of India to give directions in public interest, cannot be interpreted in a blanket manner to provide for a CBI probe.

The alleged scam pertains to misappropriation of Valmiki Corporation funds. It came to light in May this year after the Corporation's accounts superintendent, Chandrashekhar, died by suicide at his residence. Chandrashekhar had left behind a note alleging misappropriation of the welfare funds.

Soon after, the Karnataka government constituted an SIT to probe the allegations, while the Enforcement Directorate (ED) too began a separate probe.

As per the ED, around ₹90 crore was illegally transferred from the Valmiki Corporation’s Union Bank of India account to several unauthorised accounts.