RDPR dept's illegal stash cost it Rs 330-cr interest, says minister

Oppn claims funds were deposited at the behest of senior officials

The Rural Development and Panchayat Raj (RDPR) Department lost interest to the tune of Rs 300 crore by failing to utilise Rs 1,335 crore for various schemes and illegally depositing the money in banks.

The Shivarudrappa committee, which is auditing the accounts opened by the department against the rules, will submit its report in a couple of days. Later, criminal cases will be filed against those responsible, RDPR Minister H K Patil told the Legislative Council on Friday. Shivarudrappa is the additional controller of state accounts.

Replying to queries raised by BJP members, Vimala Gowda and Raghunath Malkapure, the minister said Rs 540.87 crore was illegally parked by opening 104 accounts at the Avenue Road branch of Syndicate Bank.

These accounts are in the name of Karnataka Rural Water Supply and Sanitation Department.

Rs 139.61 crore was deposited at the Gandhinagar branch of Andhra Bank in the name of the director of Rural Drinking Water scheme of the RD&PR department. Besides, Rs five crore was deposited at the Indiranagar branch of Dena Bank in the deputy secretary’s name, Patil said.

The minister went on to state that his department had sought from the said banks the details of officials who permitted deposit of the funds. But the banks are yet to furnish the details, he added.

Leader of Opposition, K S Eshwarappa, suggested that senior officials were involved in the scam and demanded that the names of the depositors be made public. He also said that a House committee be formed to probe into the scam.