Karnataka: CID makes first arrest in Bhovi corporation scam during BJP government

By Vinaykumar Patil | First Published Jul 25, 2024, 9:47 AM IST

The CID arrested P. D. Subbappa, the Bhovi Corporation's office superintendent, for embezzling funds from a loan scheme for Bhovi community entrepreneurs in 2021-22. Allegations include irregularities in loan distribution and document fabrication. This arrest marks the first breakthrough in multiple scams involving the previous BJP government.

Chief Minister Siddaramaiah has vowed to ramp up investigations into multiple scams involving the previous BJP government, in response to the BJP's allegations against the Congress government in the Valmiki Development Corporation and MUDA scams. The latest development saw the arrest of P. D. Subbappa, the office superintendent of the Bhovi Corporation, by the CID police in connection with an embezzlement case.

The case centres around the financial loan scheme offered by the corporation to entrepreneurs of the Bhovi community during the year 2021-22. Allegations surfaced that irregularities occurred in the distribution of these loans in Siddapur of Bengaluru City, Kalagi of Kalaburagi district, and Doddaballapur of Bengaluru Rural district.

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In response to the seriousness of the case, the state government ordered a CID investigation a few days ago. The investigation led to the arrest of Subbappa, who was subsequently presented in court on Tuesday and taken into custody for four days for questioning. It was reported that Subbappa attempted to cover his tracks by hiding over 200 files, which the CID officials are now recovering.

Subbappa served as the head office superintendent of Rajya Bhovi Nigam from 2021 to 2023. The Bhovi Corporation had implemented loan schemes to support entrepreneurs in the Bhovi community. However, allegations arose that middlemen were demanding large sums of money to facilitate financial assistance in these projects. Subbappa and others allegedly fabricated documents to embezzle crores of rupees from the corporation.

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Former BJP MLA Goolihatti Shekhar had complained to the State Backward Classes Welfare Department Minister Shivraj Tangadagi regarding these irregularities. Minister Tangadagi informed the Chief Minister, prompting DGP's directive for a CID investigation. The CID's probe resulted in Subbappa's arrest, marking the first significant breakthrough in the Bhovi Corporation embezzlement case.

What was the scam?

- Misconduct in the loan scheme for Bhovi community entrepreneurs during 2021-22.
- Complaints were filed in Bengaluru, Bengaluru Rural, and Kalaburagi districts.
- The state government ordered a CID investigation recently.
- Bhovi Corporation's Superintendent Subbappa was arrested by CID.

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