Karnataka Government: The Karnataka government has ordered all government departments in the state to close their accounts in the State Bank of India and Punjab National Bank. All departments will have to strictly implement this order and withdraw their deposits. No deposits or investments will be allowed in these two government banks from now on. The state government has taken this decision after alleged misappropriation of funds deposited in these banks.
After getting approval from Karnataka Chief Minister Siddaramaiah, the state finance secretaries have issued this order to all government departments. In this order, it was said that the bank accounts of the state government departments, public enterprises, corporations, local bodies, universities and other institutions in the State Bank of India and Punjab National Bank should be closed immediately. From now on, no money will be deposited in these two banks nor will any investment be made in these banks.
A senior official of the state government said that we have been pressuring the banks for a long time regarding the embezzled funds but they say that this matter is before the court. The State Public Accounts Committee has decided to stop business with these banks, after which we have had to issue this circular. However, these banks have contacted the Finance Department and have assured to resolve the matter soon. The banks have appealed not to exaggerate this matter. The government will look into this matter.
The state government has taken this decision after the ongoing political tussle between the Congress-led state government and the opposition party BJP. The state government’s Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation is at the center of this fund transfer scam. The corporation’s account superintendent Chandrashekhar P had exposed this scam in a suicide note written on May 26.
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