BBMP to investigate possible frauds in all eight zones

BENGALURU: After Maharshi Valmiki ST Development Corporation scam was uncovered, a similar scandal came to light in the western zone in Bruhat Bengaluru Mahanagara Palike (BBMP), wherein crores of rupees were transferred to non-existent cooperative institutions by nine officer.

On receiving a complaint from the Palike, the Lokayukta had written to the government seeking permission to investigate the scam. Now, the chief commissioner of BBMP has been directed that an investigation be conducted into  possible frauds in the remaining BBMP zones.

After issuing notice to those involved in the scam in the West zone, the chief commissioner has sought an investigation into financial dealings in the other zones. This come on the back of crores of rupees having already been looted in the Valmiki Corporation scam.

A special investigation team (SIT) has already traced 193 bank accounts during initial investigation in the Valmiki Corporation scam case wherein some people deposited money to withdraw the interest amount and then withdrawn the principal. Now, the SIT has issued a warning to those operating the 193 accounts and has opened a separate bank account and warned them to return the money on the condition that if they do so, they will be considered a witness; if not, they will be arrested as the accused in the case.

A similar scam unfolded in the BBMP wherein crores of rupees were transferred to non-existent cooperative institutions. The scheme, intended to help small entrepreneurs, has been misused in the names of beneficiaries by creating fake documents and signatures.

The BBMP’s Western zone nine officers have transferred substantial funds to these fictitious institutions in 2019-20 and 2020-21. A complaint was filed with the Lokayukta and a written letter was sent seeking permission to investigate nine employees.