Contract employee defrauds Labour dept of Rs 2.83 crore by diverting scheme funds, arrested

BAGALKOT: Close on the heels of the detection of fund misuse in the Tourism Department, it has now come to light that Rs 2.83 crore of the Labour Department has been illegally transferred to abour 400 bank accounts in the name of beneficiaries of various schemes.

According to the police, Dyavappa Talwar, a contractual employee, had diverted the funds between August 2023 and February 2024 and had purchased 8 tolas of gold ornaments and had purchased property worth Rs 8 lakh. He has since returned Rs 37 lakh and police have frozen Rs 76 lakh in his bank account.

Dyavappa had misused funds meant for schemes such as weddings in labourers’ families, medical assistance, etc., diverted the money to other accounts and created fake lists of beneficiaries. The list included his relatives and associates and he would withdraw the money from their accounts.

An FIR was registered at the CEN police station based on a complaint from Deputy Labour Commissoner D G Nagesh against Dyavappa, his relatives Bhagirath Talwar, Hanuman Talwar and Pallavi Talwar. They have since secured bail.