Yadgiri: Misappropriation of MP's Area Development Grant Uncovered

Yadgiri: A significant case of financial misappropriation has been uncovered concerning the MP’s Area Development Plan for the Kalaburagi constituency. The grant allocated for works under the Panchayat Raj Engineering Department for the fiscal years 2022-23 and 2023-24 has been misused, leading to major delays in bill payments to contractors who had completed various projects.

The investigation has identified Shantiah Mathad, a First Class Assistant at the District Collector’s Office and subject manager for the MP’s Regional Development Scheme Branch, as responsible for misappropriating ₹54.75 lakh from the government grant. Mathad allegedly falsified documents to divert funds into his personal account, despite being under suspension at the time.

Eleven development projects, including two from 2022-23 and nine from 2023-24, were directly impacted by this fraud. While works, such as road construction and community buildings, worth ₹5 lakh were completed, the contractors are yet to receive their payments due to the financial irregularities.

In a tragic turn of events, Shantiah Mathad passed away in an accident on June 15, 2024. Following his death, the investigation has extended to questioning his wife. Dr. Sushila B., the District Collector (DC), confirmed the misuse of funds and ordered a detailed probe into the matter.

The inquiry also revealed that ₹50 lakh was transferred to the Karnataka bank account of Mathad’s mother, Shantamma, of which ₹6.16 lakh had been used for personal expenses. However, on July 26, ₹43.83 lakh was successfully returned to the government’s bank account through RTGS, leaving ₹10.91 lakh still unaccounted for.

A formal complaint has been registered at the Sen police station, and investigations are underway. The Executive Engineer and Auditor from the Panchayat Raj Engineering Department have been found negligent, with the district administration recommending disciplinary action against them. Dr. Sushila B. further mentioned that Mathad’s wife had previously notified authorities about the misuse, though the grant is yet to be returned due to technical delays. The administration is now awaiting further government action.