Published On: Thu, Aug 20th, 2015

ICAS officer arrested for Rs 2,202 crore fund embezzlement

Bengaluru: An ICAS officer is behind bars after Karnataka CID police arrested him for for Rs 2,202 crore fund embezzlement.

ICAS officer Sandeep Dash was arrested for Rs 2,202 crore fund embezzlement.

ICAS officer Sandeep Dash was arrested for Rs 2,202 crore fund embezzlement.

Indian Civil Accounts Service officer Sandeep Dash not only diverted government funds of Rs 2,202 crore to fictitious bank accounts and channelised them into the capital markets, but also gained Rs 100 crore in return – and walked away until the embezzlement of funds was detected recently.

Before arresting, he was posted as the Controller of Accounts, Mizoram.

The alleged embezzlement of funds took place when Dash was the Finance-Member of the Bengaluru Development Authority (BDA) between 1997 and 2005.

Two of his alleged accomplices – M N Sheshappa (retired joint controller of state accounts department) and BDA cash clerk C Vasanth Kumar – have also been arrested for their role in the scam. All three have been remanded in police custody for interrogation.

According to the CID police, Dash, Seshappa and Vasanth hatched a conspiracy to usurp government funds at the BDA.

The BDA had surplus funds between 1997 and 2005 when the BDA developed a record number of townships. The trio created fictitious accounts in various banks and transferred Rs 2,202 crore to those accounts without any official approvals. Then, the funds were channelised into the capital markets through these fictitious accounts using stock brokers.

In the BDA official records, the Rs 2,202-crore fund was shown to have been deposited in different banks for fixed deposits and they promptly paid the interest accrued to give an impression that the BDA was receiving returns for the investments.

In reality, the entire amount of Rs 2,202 was invested in mutual funds, high growth funds, and different government agencies for higher interest rates.

The CID police said that the trio pocketed Rs 100 crore over five years by trading public money.

The scam went undetected till new commissioner for the BDA, Shyam Bhat, ordered an audit of the accounts on the basis of a discrepancy regarding the transfer of funds brought to his notice by the Karnataka CAG.

Subsequently, an internal inquiry revealed the large-scale embezzlement of funds last year and the BDA lodged a complaint with the police seeking a probe.

When a preliminary probe revealed the involvement of senior officers, the case was transferred to the CID.

Inputs with Mail Today

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