Valmiki scam: Is it ‘Nyay’ to siphon money from SC/STs, asks FM Sitharaman

The Prime Minister rejected these accusations and said that he had no information on the matter. | Photo: PTI

3 minutes of reading Last updated: July 28, 2024 | 5:00 PM IST

Finance Minister Nirmala Sitharaman hit out at Chief Minister Siddaramaiah, asking him whether taking away money belonging to the Valmiki tribal community is Nyay’ (justice).

Referring to the Rs 187 crore fraud in the Karnataka Maharshi Valmiki Scheduled Tribe Corporation, including an illegal transfer of Rs 88 crore, Sitharaman accused Siddaramaiah of covering up facts and trying to shift the blame to the central government as officials of a nationalised bank were involved in the case.

On Siddaramaiah’s allegation that the union finance minister should be held accountable because banks were involved, Sitharaman said: He can say so because he is used to talking like that. It is so irresponsible. You are making your minister resign. You are making your people say that the money was transferred to private accounts.

The minister said that action had already been taken as a first step against the banking schemers and that further action would be taken against them. “They will definitely not be offered any protection.”

But she wanted to know, the Minister had to resign under whose watch? An attempt to deny, an attempt to shift the blame or to say that there was no scandal. It is SC/ST money. Whose money was taken from the Valmiki community. Is there no sense of indignation?

They (Congress) talk about Nyay’ (justice) during election campaign. Is this Nyay for SC/ST community? Sitharaman said.

During the Lok Sabha elections, the Congress used the slogan ‘Ab Hoga Nyay’ to do justice to the downtrodden communities and introduce policies for their upliftment.

The finance minister said the bank had already taken action against the dishonest officials and asked Siddaramaiah how the minister involved in the scam and the chief minister in charge of finance failed to stop the bank from illegally transferring money.

“You have denied the entire incident, your minister has not even resigned. And about the money that went to private accounts, you go to the assembly to say that it is not Rs 180 crore or Rs 140 crore, it is only about Rs 80 crore. You are hiding it, sir. It is outrageous what is happening, especially with SC/ST money,” the FM said.

It is said that Rs 187.33 crore of Valmiki Corporation kept in various accounts, including Rs 40 crore in the government treasury, was diverted to the Union Bank of India branch at MG Road in the scam.

Of this amount, Rs 88.63 crore was illegally transferred to at least 217 bank accounts in Telangana, including those of 18 companies.

Former Karnataka Chief Minister B. Nagendra, arrested by the Enforcement Directorate, is in judicial custody in connection with the case.

The fraud came to light after the accounts director of Valmiki Corporation, Chandrasekharan P, committed suicide.

In his suicide note, he explained in detail how the money was transferred and what role the corporate and bank representatives played in the fraud.

The opposition BJP has accused the ruling Congress of being involved in the scam, saying the transfer of money could not have taken place without the knowledge of Siddaramaiah, who heads the finance ministry.

The head of government rejected these accusations and stated that he had no information on this subject.

First published: July 28, 2024 | 16:57 IST