Union Bank of India files complaint with CBI; Suspends 3 Bank officials

Bengaluru: Following a massive protest from BJP workers and mounting pressure from Opposition party leaders, Chief Minister Siddaramaiah has reportedly instructed Tribal Welfare Minister B. Nagendra to tender his resignation from the Cabinet.

This comes in the wake of allegations involving Nagendra in the Rs. 94 crore scam reported in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.

According to highly placed sources, the CM’s directive to Nagendra aims to prevent embarrassment for the Government. Siddaramaiah also discussed the issue with Dy.CM D.K. Shivakumar yesterday, during which it was decided to drop Nagendra from the Cabinet until the investigation is complete.

In a related development, the Union Bank of India, through which the money was allegedly transferred, has filed a complaint with the Central Bureau of Investigation (CBI).

In a press release, the Bank stated that it had promptly declared the transactions in question as fraudulent when the irregularities came to light. Additionally, three branch officials have been placed under suspension pending further inquiry.

With the CBI now involved, CM Siddaramaiah was in discussion with Home Minister Dr. G. Parameshwar at his home office, Krishna, to deliberate on the issue and the future course of action at the time of going to  the press.

It is almost certain that Minister Nagendra might face a CBI inquiry, and his resignation in this context could save the State Government from further embarrassment.

It may be recalled that Corporation Accounts Superintendent P. Chandrashekaran, in a death note purportedly written by him, had named Minister Nagendra, accusing him of giving oral instructions for the transfer of funds to the tune of Rs. 94 crore to various accounts.