Grants from the Central and State Government, which were meant for rehabilitative and development works, were discovered to have been diverted to banks eventually. The Karnataka Congress government suspects a large-scale conspiracy to misappropriate the funds.


Minister for Rural Development and Panchayat Raj, HK Patil, who is investigating the alleged embezzlement, told the media that the Chief Minister wants an SIT probe on this ‘murky, mysterious’ deal.


Law Minister T B Jayachandra, who also spoke on the issue, told reporters after the meeting that the recovered money would be used for Rural Development and Panchayat Raj drinking water projects.