Valmiki Corp scam: Police say accused visited bank 5 times to transfer Rs 94 crore

Rajiv Kalkod / TNN / Updated: Jun 30, 2024, 12:13 IST

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The SIT's diligent efforts have unraveled a complex web of fraudulent activities, leading to the recovery of substantial amounts and the arrest of multiple suspects. The ongoing investigation focuses on tracing the remaining funds and entities involved in the elaborate scam, highlighting the importance of stringent measures to combat financial fraud.

Valmiki Corp scam: Police say accused visited bank 5 times to transfer Rs 94 crore

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BENGALURU: The latest investigation into the alleged scam at Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd shows that a Hyderabad man had mainly carried out the fraudulent transfer of Rs 94 crore (online) to 18 bank accounts of a Hyderabad firm.
Sai Teja alias Shivakumar was arrested last Monday and according to sources, he confessed to have visited the Union Bank of India’s MG Road branch, posing as Shivakumar, a staffer from the corporation.

With the help of bank officials, he allegedly transferred Rs 94 crore to bank accounts of Hyderabad-based First Finance Credit Co-Operative Society Limited. CCTV footage seized by police shows Teja inside the bank around five times on different dates, carrying documents needed for making online transfers.
The special investigation team (SIT) of CID probing the scam has so far recovered Rs 28 crore after arresting 11 suspects. In May, it had come to light Rs 94 crore from the corporation’s account in the MG Road branch was illegally siphoned off. When corporation officials brought the matter to bank officials’ notice, Rs 5 crore was transferred back. SIT is looking into the remaining amount.
Recovered ₹28 cr from 193 accounts: Sources

On May 26, corporation staffer Chandrashekhar died by suicide at his Shivamogga residence. A six-page death note stated that the money was transferred on the ‘oral’ instructions of a minister from the Congress govt. Later, MLA Nagendra, who was minister for sports, youth services and ST welfare, resigned. According to SIT sources, they recovered Rs 28 crore from 193 bank accounts of the suspects, IT firms, hotels, bar and restaurants and gold showrooms, in Hyderabad and other places.

“Rs 14 crore in cash, which were deposited by the suspects in different bank accounts, was recovered. Besides, Rs 10 crore cash deposits were found in other bank accounts, which were again transferred by the suspects themselves. Similarly, gold ornaments worth Rs 4 crore have been recovered so far,” an SIT officer said.

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