Over ₹1,000 crore from 25 state-run corporations deposited in private banks

All these massive deposits contravene state government directives

Finance Department has launched an intensified investigation

In a startling revelation, over ₹1,000 crore from 25 state-run corporations and boards have been deposited in private banks, contravening state government directives. The Finance Department has launched an intensified investigation following the transfer of funds by Valmiki Corporation, raising suspicions about other state entities.

A directive has been issued to freeze the bank accounts of these corporations and boards with immediate effect. The Finance Department has written to all banks and relevant state departments, requesting detailed information on the deposits.

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Despite orders mandating deposits in the Government Treasury, several corporations and boards opted for private banks. The magnitude of these violations is significant, with thousands of crores deposited in private banks.

The Finance Department’s inquiry has revealed that a total of ₹1,731.16 crore is deposited in private banks by various community development corporations and boards, including those under the Department of Backward Classes Welfare, Revenue, and Social Welfare.

The D Devaraja Arasu Backward Classes Development Corporation, for instance, is reported to have opened multiple accounts in Bank of Baroda and ICICI Bank, with deposits totaling ₹310.99 crore. The Finance Department is actively seeking detailed information on the exact amounts held in different banks.

The ongoing probe aims to uncover the extent of these irregularities and ensure compliance with state financial regulations.