Karnataka mulls CBI probe into swindling

Karnataka may order a CBI probe into the alleged embezzlement of about Rs 10 crore of the Ramanagara-Channapatna Urban Development Authority.

"We are considering to hand over the probe to CBI," Urban Development Minister Vinaya Kumar Sorake said in the Assembly. Leader of Opposition H D Kumaraswamy, who raised the issue, said the authority had kept funds of Rs 9.5 crore in a public sector bank and Rs 40 lakh in a private bank but transferred the amount to another public sector bank which offered a better interest rate but now says it has no such deposits.

Since the embezzlement is to the tune of over Rs 2 crore, a probe into it should be handed over to the CBI as per RBI norms, the JD-S leader argued. As the issue involved banks, Sorake said the government was considering a CBI probe. The government yesterday announced a probe into alleged misappropriation in Mandya Urban Development Authority.
 

Sorake said MUDA Commissioner H S Shivaram has been arrested in connection with the case.