CM assures action in KIADB case

Karnataka Chief Minister Siddaramaiah today assured action against Karnataka Industrial Area Development Board (KIADB) officials if found guilty in connection with the pre-closing of a fixed deposit of Rs 12 crore with the Punjab National Bank (PNB).
"The government will take action against the officials of KIADB if found guilty in connection with the bank fraud in question," he told the state Assembly.
Siddaramaiah said he would soon convene a meeting with KIADB officials on the issue.
Raising the issue, Opposition Leader and state JDS president H D Kumaraswamy said during CBI investigations, it was found that a sum of Rs 25 crore was deposited in two units of Rs 13 crore and Rs 12 crore by KIADB as fixed deposits with the PNB through the Rajaji Nagar Branch in the city.

The amount was later credited to the account of the Sankari branch in Salem district in Tamil Nadu September last year, Kumaraswamy said.
"On maturity, when the KIADB approached PNB for return of the deposited amount, it got only of Rs 13 crore. It reported that the Rs 12 crore fixed deposit was not returned," he informed the House.

Kumaraswamy said the bank held an inquiry and found a letter purportedly written by KIADB asking for foreclosure of the Rs 12-crore deposit. "Thereafter, the bank wrote to the CBI for investigation."
CBI found that the foreclosure letter was forged, the former Chief Minister said.

Responding to yet another issue raised by Kumaraswamy, Siddaramaiah also assured action against a private company to return Rs 54 crore for violating agreed terms in implementing the project of computerising and issuing ration cards to eligible families.
The company had issued ration cards to families without any verification resulting in a loss of Rs 400 crore to the state exchequer, Kumaraswamy alleged.