NewsFlash Daily™
24 March 
Forgery of officials’ signatures and illegal fund transfers over four years exposed in internal audit; CID probe likely
Ballari: In a major financial scam, over Rs16 crore has allegedly been siphoned off from the Karnataka Industrial Areas Development Board (KIADB) office in Ballari, triggering a criminal investigation against multiple accused.
The scam came to light during an internal audit conducted this year, which revealed that a staggering Rs16.17 crore was illegally transferred over a period of four years, between 2022 and 2026.
Seven Booked, Key Accused Absconding
Based on a complaint filed by the Executive Engineer, police have registered an FIR against seven individuals, including a contract employee, Santosh Kumar and a private bank manager, at the APMC Police Station.
Soon after the FIR was filed, the prime accused, Santosh Kumar, reportedly went into hiding.
Forgery and Illegal Transactions
Investigations suggest that the accused forged signatures of officials and used cheques to transfer funds into multiple accounts. The fraudulent transactions allegedly continued undetected despite annual audits, raising serious concerns about internal oversight.
“The fraud spans four years and involves over Rs. 16 crore. Only a detailed investigation will reveal the complete truth,” said Superintendent of Police Suman Pennekar.
Complaint and Investigation Status
According to police, the complaint was officially filed on March 19, after which the case surfaced. The investigation is currently in its preliminary stage, and efforts are underway to trace and arrest the accused.
CID Probe Likely
Given that the fraud amount exceeds Rs 15 crore, authorities have indicated that the case may be transferred to the Criminal Investigation Department (CID) for a deeper probe.
Systemic Lapses Under Scanner
The fact that such a large-scale financial irregularity went unnoticed for years has raised serious questions about audit mechanisms and administrative accountability within the department.
