Valmiki scam: Sitharaman lashes out at Karnataka CM for demanding her resignation

Bengaluru: Finance Minister Nirmala Sitharaman strongly criticised Karnataka Chief Minister Siddaramaiah for demanding her resignation over the alleged Maharishi Valmiki Corporation Board scam in the state.
The Finance Minister asked why Siddaramaiah had not pursued action against the bank officials involved in the scandal.
Addressing the media at a post-budget press conference in Bengaluru on Sunday, Sitharaman said, "Karnataka CM Siddaramaiah can say this because he is quite used to speaking like that. That is not responsible."
"Action has already been taken as a first step against the conniving officials in the bank and further lawful action will be taken against them and no protection will be offered to them, I am sure. But here is a minister who had to resign under his oversight. This has happened. Attempt to deny, an attempt to shift blame, an attempt to say there is no scandal happening," she said.
"The Valmiki community's money was taken away. Is there no sense of outrage? They (Congress) talk about 'Nyay' during election campaigns. Is this Nyay for the SCs and STs?" she stated.
Taking a swipe at the Karnataka Chief Minister, she said, "I want the media to ask them how come you, who has the authority over the accounts, didn't stop the banks. If only they had taken the bank officials to the police station and held them accountable, then that would have given the right to Chief Minister Siddaramaiah to accuse the central government, accuse me and ask me to resign."
"You didn't take the officials to the police station. Even if they were bank officials, I had no problems. If they have done wrong, they should be punished. But you didn't take them to the police station; you denied the whole thing; and your minister did not even resign.
The Finance Minister also lashed at the Karnataka CM for speaking about the statistics of the alleged scam while mentioning that the scam was not over Rs 180 crore but that of some Rs 80 crore.
"Additionally, with the money that has gone to a private account, you (Siddaramaiah) go to the assembly and say that it was not Rs 180 crore but only some Rs 84 crore. You are conceding, sir, that this is the kind of outrageous thing happening, particularly on the SCs and STs," she said.
Sitharaman said, "I have already taken action against the bank staff. Further legal action and prosecution will happen against the bank staff."
"I have taken action against the accused officials and I want them to be punished for the connivance which they showed with the state government officials. I want to ask in return what the Karnataka chief minister's action was on the matter," she stated.
Earlier on July 19, the Karnataka Legislative Assembly witnessed a ruckus over the alleged financial irregularities in a state-run corporation, with the opposition BJP and JD(S) staging a protest against the government, accusing it of "loot" and demanding the resignation of Chief Minister Siddaramaiah.
Amid the opposition's continued sloganeering from the well of the House, Siddaramaiah sought to defend himself and his government.
He tried to turn the tables on the opposition, listing out the alleged scams during their tenure, especially the BJP, and calling the opposition party a "Pitamaha of corruption."
Questioning the demand for his resignation, he asked if Union Finance Minister Nirmala Sitharaman would take responsibility for irregularities that have happened in a nationalised bank and should quit as banks come under the Finance Ministry.
The scam pertains to the alleged illegal transfer of funds from the Maharshi Valmiki ST Corporation, which is charged with implementing welfare programmes for scheduled tribe members.
Earlier, the Directorate of Enforcement (ED) detained former Karnataka Minister B Nagendra's wife, Manjula.
A Bengaluru Court granted judicial custody to former Karnataka Minister B Nagendra in connection with the alleged Valmiki Corporation scam till July 18.
The Enforcement Directorate (ED) arrested Nagendra in connection with the alleged multi-crore scam case. Soon after the arrest, he was produced before the Court in Bengaluru.
The alleged corruption case of Maharshi Valmiki Scheduled Tribes Development Corporation came to light after an official of the Corporation died by suicide and left a note containing an allegation of multi-crore corruption in the corporation.
The official identified as Chandrasekaran (45), a resident of the Kenchappa colony in Vinobanagar, allegedly died by suicide on May 26 after leaving a note containing an allegation of multi-crore corruption in the corporation.
Chandrasekaran was a superintendent with the MVDC and was posted at its Bengaluru office.
In a six-page suicide note recovered by police, Chandrasekaran mentioned the names of three officials and alleged corruption worth crores in the corporation, demanding action against the named officials.
On June 6, Nagendra said that he has voluntarily decided to resign as an investigation is going on over the allegations of illegal money transfer from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd.
The former Karnataka Minister dismissed all the allegations against him and said that he'd come out clean after the investigation.