Have not asked Nagendra to resign: Siddaramaiah

Bengaluru, June 6 (IANS) Karnataka Chief Minister Siddaramaiah on Thursday said that he has not asked Youth Empowerment, Sports and Tribal Welfare Minister B. Nagendra to resign for alleged misappropriation of funds meant for the state Tribal Welfare Corporation.

“It is true that I spoke to Nagendra but it does not mean that I asked him to resign,” the Chief Minister told media persons.

When again asked about whether he had given specific direction to Minister Nagendra to resign, Chief Minister Siddaramaiah did not answer the question.

Earlier, there were reports that the Chief Minister had asked Minister Nagendra to resign from his post following the Central Bureau of Investigation (CBI) launching a probe into the alleged diversion of Rs 187 crore of government funds to finance the Lok Sabha election in Telangana and other states by the Congress government.

The BJP claims that Rs 187 crore, meant for tribal welfare, was transferred from the government account to individual accounts for use in election expenses of the Congress in Telangana and other states.

The BJP has also alleged that it is impossible to transfer such a huge amount without the knowledge of Chief Minister Siddaramaiah.

On Thursday, the BJP also undertook a 'Raj Bhavan Chalo' march from Vidhana Soudha to the Governor’s residence demanding the resignation of Minister Nagendra.

Special Investigation Team (SIT) seized Rs 45 crore deposited in Hyderabad First Finance Cooperative Bank on Thursday. Sources said that a total of Rs 94.73 crore was transferred to fake accounts in this bank from the Tribal Welfare Corporation.

The SIT has arrested Satyanarayan, a key person, in connection with this case while also arresting five individuals, including the Personal Assistant (PA) of Minister Nagendra, Nekkunti Nagaraj.

The CBI filed an FIR following a complaint by the management of the Bengaluru branch of the Union Bank of India. The FIR names five individuals, including three bank staffers. According to the FIR, government officers, people's representatives, and private persons are involved in the fraud.

Chandrashekaran P. (52), the Superintendent of Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation (KMVSTDC), allegedly died of suicide last week after leaving a note purportedly blaming senior officials and a sitting minister for coercing him to facilitate the misappropriation of funds.

Chandrashekaran also claimed that he was tortured and humiliated for questioning the illegal transactions. His family has claimed that he was under tremendous pressure following the transfer of money without his knowledge.