Bengaluru: The Special Investigation Team (SIT) has arrested Sathyanarayana, the Chairman of a Hyderabad-based cooperative society, in connection with the illegal transfer of Rs 94.7 crore from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.
Sathyanarayana was apprehended on Monday and brought to Bengaluru on Tuesday, where he was subsequently presented in court.
The arrest follows a raid conducted by SIT officials at the Corporation’s office in Vasanth Nagar, Bengaluru, during which both digital and paper documents related to the scam were seized.
The investigation has led to the freezing of 14 bank accounts associated with the suspect. Additionally, a team has been dispatched to Hyderabad for further inquiries.
This arrest is part of an ongoing investigation that began on May 31, when police detained Managing Director JG Padmanabha and Accounts Officer G Parashuram on the outskirts of Bengaluru. Both were produced before a magistrate court on Saturday and are currently in police custody until June 6.
The unauthorised transfer was uncovered following the tragic suicide of accounts superintendent Chandrashekhar on May 26 in Shivamogga. Chandrashekhar left a death note detailing the illegal transfer and naming the officials involved.
In a press briefing on Wednesday, Home Minister Dr G Parameshwara confirmed that the Central Bureau of Investigation (CBI) has registered an FIR in connection with the case, responding to a letter from the bank.
Under the law, the CBI can initiate a voluntary case if a scam involves more than Rs three crore. The state government has pledged full cooperation with the CBI’s investigation.
