Lokayukta police book handicraft corporation GM

The Lokayukta police have registered a case against the General Manager (Marketing) of the Karnataka State Handicrafts Development Corporation (KSHDCL) for causing a loss to the State exchequer.

The accused G Muniswamy and other officials of the KSHDCL had taken a house in Jayanagar on rent to open a Cauvery Emporium showroom despite having an old showroom barely 100 metres away.

The complaint filed by advocate Amrutesh stated that a Cauvery Emporium showroom was in existence at the Jayanagar BDA complex for the past 20-25 years. Despite this, Muniswamy and other officials decided to open another showroom in the same vicinity in 2012. The agreement for four years stated that a house in Jayanagar will be taken on a deposit of Rs 50 lakh and a monthly rent of Rs four lakh. This apart, the KSHDCL has also spent Rs 1.31 crore on interior design of the house to convert it into a showroom.

“On verification, it was found that in 2012, the showroom suffered a loss of Rs 65.90 lakh and, the next year, the loss was Rs 75 lakh. The complaint stated that because of this decision, the old showroom at the BDA complex also suffered losses,” an official said.

The Lokayukta police registered an FIR under Sections 13 (1) (c), 13 (1) (d) of the Prevention of Corruption Act and Section 120 (b) of the IPC against Muniswamy and others.
The police on Saturday searched the office and the residence of the accused and seized incriminating documents.