Karnataka Government Embroiled In Another Scam, Illegal Transfer Of Rs 19.34 Crores Found

The Congress government in Karnataka, led by Chief Minister Siddaramaiah, continues to face a series of scandals that have rocked its administration. While the government is already grappling with the fallout from the MUDA scandal and the illegal money transfers in the Valmiki Development Corporation, fresh allegations have surfaced regarding the Karnataka State Cooperative Society, further deepening the crisis.

The Valimiki Development Corporation scandal had already placed the Siddaramaiah government under intense scrutiny, with even a Congress MLA being arrested in connection with the case. The Enforcement Directorate (ED) has actively pursued investigations into both the Valmiki and MUDA scams, intensifying pressure on the administration. Amid these controversies, a new financial scandal has emerged involving an alleged illegal transfer of Rs 19.34 crore within the Karnataka State Cooperative Society.

The scandal came to light during a recent meeting chaired by Cooperation Minister KN Rajanna. It was revealed that from 2017 to 2024, Rs 19.34 crore, held in fixed deposits (FD) by the society, had been illegally transferred to a private account. The main accused, Ashalatha Pati Somashekhar, the in-charge CEO of the society, along with her husband and others, allegedly created fake deposit bonds for 101 FD accounts to conceal the misappropriation. Forged signatures of the society’s president were also used, further compounding the fraud.

During the meeting, Ashalatha claimed that the society’s funds were deposited in BDCC and Apex Bank. However, verification exposed the illegal transfer and the creation of counterfeit deposit bonds, leading to an official complaint.

The president of the society, Raju, lodged a complaint with the Nandini Layout Police Station in Bangalore, resulting in an FIR being registered against six individuals, including Ashalatha, her husband, a BDCC and Apex Bank. However, verification exposed the illegal transfer and the creation of counterfeit deposit bonds, leading to an official complaint.

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