Karnataka: ₹4.27 Crore Fraud in Madhugiri Taluk Panchayat, SDA and Congress Leader Named in FIR

A ₹4.27 crore fraud has been exposed in Karnataka’s Madhugiri Taluk Panchayat, where funds meant for employees were allegedly diverted using fake claims. An SDA and a Congress leader are among six people named in the FIR. Police are investigating.

In a major case of alleged financial fraud, a massive scam involving the misappropriation of public funds has come to light in the Madhugiri Taluk Panchayat of Tumakuru district. Government money amounting to ₹4.27 crore is suspected to have been illegally siphoned off through fraudulent transactions. The case has triggered widespread concern over accountability and financial oversight in local administration, with police registering an FIR against six individuals, including a Second Division Assistant (SDA) and a local political leader.

How the ₹4.27 Crore Scam Was Carried Out?

The prime accused in the case is Soumya, an SDA at the Madhugiri Taluk Panchayat. The alleged scam centres on the ‘Earned Leave Encashment’ facility, which is meant to provide financial benefits to government employees upon retirement or in the event of their death while in service.

According to preliminary investigations, instead of being credited to eligible beneficiaries, the funds were allegedly diverted to the bank accounts of Soumya’s relatives and acquaintances. The allegations point to a systematic misuse of official position to carry out the fraud.

Congress Leader Named In FIR

The case has gained political significance as a local Congress leader, district secretary Ramesh, has also been named among the accused. Others booked in the case include Shivaleela, Suma, Meenakshi, and an office staff member, Praveen.

Initial findings suggest that the funds were routed to multiple private accounts, indicating a coordinated effort involving several individuals.

Complaint Filed By Executive Officer

Police action was initiated after the Executive Officer (EO) of the Madhugiri Taluk Panchayat, Lakshman BS, lodged a formal complaint. Based on the complaint, a case was registered and an investigation was launched into the alleged embezzlement of ₹4,27,00,000.

Departmental Probe And Suspension

Even before the FIR was filed, the Tumakuru Zilla Panchayat had initiated an internal inquiry following suspicions of financial irregularities. The departmental probe reportedly found evidence of fund misuse.

Subsequently, Zilla Panchayat CEO Ashvija BV suspended Soumya from service. With the registration of the FIR, all the accused now face possible arrest as the investigation progresses.

Investigation Underway

The case has once again highlighted concerns about corruption and financial loopholes within government offices. The Madhugiri police are continuing their investigation, focusing on recovering the misappropriated funds and identifying whether more individuals were involved in the scam.