Koppal, 17 August

An alleged Rs 8.43-crore fraud has surfaced at the Koppal Urban Development Authority (KUDA), with an outsourced employee accused of opening unauthorised bank accounts in the authority’s name and collecting money from more than 150 prospective plot buyers.

Ravindrakumar, a former outsourced Second Division Assistant, allegedly worked with former KUDA Commissioner Yoganand and another staff member to open accounts at five banks. Police suspect the involvement of bank officials and others.

The accused allegedly issued fake authority letters and sent account details to beneficiaries through WhatsApp, claiming they would receive plots in Saroja Layout. More than 150 people reportedly deposited money into the accounts.

The fraud came to light after a woman from Gangavathi complained that she had paid for a plot but received no allotment. An inquiry found that she had deposited the money into an unauthorised account. An audit reportedly found that Rs 8.43 crore was transferred to accounts linked to Ravindrakumar, his family members and Yoganand, including Rs 1.5 crore to Ravindrakumar, Rs 33 lakh to his wife, Rs 1.49 crore to his brother and Rs 8 lakh to Yoganand. Another Rs 4 crore was transferred to a separate account.

Transactions were subsequently frozen, safeguarding Rs 3.40 crore belonging to KUDA.

A case was registered at Koppal City police station on 14 August. Ravindrakumar and Yoganand are absconding, and police have launched a search.

Deputy Commissioner Suresh Itnal said the fraud appeared to involve insiders, outsiders and bank employees. Opposition leader R Ashoka demanded a comprehensive probe, alleging institutional corruption.