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Wednesday, June 12, 2019

Multi-crore Bengaluru IMA scam: SIT led by DIG Ravikanthe Gowda to probe

Crime
A total of 11 members have been chosen from various police departments including the CID, Intelligence and Lokayukta.
Karnataka Chief Minister HD Kumaraswamy on Wednesday announced the formation of a 11-man special investigation team (SIT) led by Deputy Inspector General (DIG) of Police Ravikanthe Gowda to probe the multi crore I Monetary Advisory (IMA) scam.  Ravikanthe Gowda will be assisted by Bengaluru Deputy Commissioner of Police (DCP) Crime S Girish, Assistant Commissioner Central Crime Branch, Bengaluru Balaraju, Deputy SP CID K Ravishankar, Dy SP  State Intelligence Bengaluru Raja Imam Kasim and Dy SP Karnataka Lokayukta Abdul Khader. Others in the team are police inspectors CR Geetha of Karnataka Lokayukta, LY Rajesh of BDA (Bengaluru Development Authority), Anjan Kumar of CCB, N Thanveer Ahmed, State Crime Records Bureau and BK Shekhar of the Commercial Street Police Station. A note by the Karnataka State Police Chief N Neelamani Raju said that the SIT will report to the ADGP, Crime & Criminal Network Tracking & Systems (CCTNS) Mohammed Saleem. The development was expected as Home Minister MB Patil who was directed by the CM to take stock of the situation met senior police officials in the state. Speaking to reporters, he had said that the government will form an SIT. While the company’s MD Mansoor Khan is absconding and is suspected to be in Dubai, six other directors of the company surrendered to the police. Since Sunday, investors of the scheme went into panic mode after a WhatsApp audio, purportedly that of IMA’s MD Mansoor Khan threatening suicide had gone viral. In the audio which was also sent to the city Police Commissioner, Mansoor is heard saying that the Shivajinagar Congress MLA, Roshan Baig (although he did not explicitly mention his name in the clip), had taken Rs 400 crore from him to contest the 2019 Lok Sabha elections. On Sunday, based on more than 3,000 representations, Commercial Street Police registered an FIR against Mansoor and four others of the company for cheating and criminal breach of trust. Since then, the number of complaints have been increasing. The issue was widely covered in the media as hundreds of its investors thronged to IMA’s office since Monday morning, creating a law and order situation  
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Rs 40 crore irrigation scam: Karnataka CID files 1.23 lakh-page charge sheet

Crime
The charge sheet has been filed against 60 persons, including 18 officials of the Minor Irrigation department.
The two-year-long investigation into the alleged Rs 40 crore misappropriation in Karnataka’s Minor Irrigation department has finally concluded. The Criminal Investigation Department, on Tuesday, filed a 1.23 lakh-page charge sheet in the Koppala JMFC Court. “The charge sheet has been filed against 60 persons, including 18 officials of the Minor Irrigation department. The officials had colluded with contractors and created fake bills, and within a span of four months, they had created thousands of fake bills and looted Rs 40 crore of public funds,” said CID DySP K Purushottam. The CID has collected documents pertaining to the details of the contracts, the fake bills that were generated between October 2015 and January 2016, cheques, bank statements, witness statements, confessions and other evidence. The scam Between October 2015 and January 2016, Rs 40 crore was released to the Minor Irrigation department in Koppal district for dredging lakes before the monsoons set in. During this period, only a third of the 112 lakes were filled with water and the remaining were to be dredged. As many as 18 officials from the Minor Irrigation department and 52 others, including contractors and government officials in various other departments, have been accused of creating 3,938 fake bills, pertaining to 172 piecework contracts for dredging the lakes, and transferring money – less than Rs 1 lakh at a time – to the bank accounts of various contractors. “They were transferring small amounts to avoid detection,” DySP Purushottam said. The scam was brought to light after the Karnataka Prantha Raitha Sangha filed an RTI and obtained information about the development works completed in the district. The KPRS had accused the Anti Corruption Bureau officials of ignoring the multiple complaints filed by the organisation regarding the scam. KPRS had alleged that the ACB officials were colluding with the Minor Irrigation department. Soon after, the Kalaburgi district Executive Engineer was appointed to conduct an internal inquiry, and he submitted a report on the discrepancies to the state government on April 7, 2016. The report suggested that thousands of fake bills were generated and crores of rupees were misappropriated. The case, which was being probed by the Kushtagi Police, was then handed over to the CID in 2017. Soon after, 26 government officials were suspended, of which 17 were from the Minor Irrigation department. The officials – Premanand Kumar, former executive engineer; HD Jhadhav, former technical assistant; B Shivakumar, former assistant executive engineer; S Manohar, former assistant executive engineer; MH Pawar, assistant executive engineer, and Chandrashekhar S Kalburgi, first-division assistant in the Minor Irrigation department in Kushtagi division – were named as accused in the case after the CID raided their homes and offices in 2017 to gather evidence. Similarly, several raids were conducted in the homes of Minor Irrigation department officials in Mysuru, Kolar, Vijayapura, Ballari, Davangere and Kushtagi.    
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Farmers will get full loan waiver money in single phase, Karnataka govt announces

Farm Loan
The decision comes a week after over 13,000 farmers alleged that the government had withdrawn the money deposited into their banks under the scheme.
After being accused of withdrawing lakhs of rupees deposited under the loan waiver scheme from the accounts of Karnataka farmers, the state government has decided to waive all eligible farm loans in one go. Chief Minister HD Kumaraswamy, on Wednesday announced that loans of 2,28,961 farmers amounting to Rs 4,617.31 crore will be released in a single phase across the state. “The money was to be released in two phases but that decision has been changed. So far, several farmers have availed of the scheme and we will release the remaining money in one go and is expected to be complete within the next couple of months,” a spokesperson with the Chief Minister’s Office said. According to data obtained from the CMO, 2,82,230 farmers are eligible for restructured loan waiver amounting to Rs 2,812 crore; overdue loans amounting to Rs 3,057 crore of 2,76,286 farmers; NPA loans amounting to Rs 965.72 crore of 1,08,136 eligible farmers; and regular loans amounting to Rs 720 crore of 3,11,400 eligible farmers fall under the scheme. As many as 9,78,052 farmers across the state were considered eligible under the Crop Loan Waiver Scheme. The total cost of the loans was pegged at Rs 8,547 crore of which, Rs 3,930 crore has already been waived, the data suggests. “Some restricted, overdue and regular loans were already waived. Now the remaining ones will be done in a single phase. Funds amounting to Rs 5,150 crore was released to the Nodal Department earlier when the loans were waived in phase 1. The Department currently has Rs 1,219.83 crore remaining and requires Rs 3,397.48 crore funds to reimburse all eligible farmers, whose loans have not been waived,” the official added. Earlier in June, the money reimbursed in April to over 13,000 farmers across the state under the scheme was withdrawn. Several farmers were shocked and had alleged that the government had deposited the money only to obtain votes for the Lok Sabha Elections. Read: Karnataka farm loan waiver money ‘disappears’ from accounts of over 13,000 farmers
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Cyclone Vayu: Passengers stranded at Bengaluru airport as flights to Mumbai affected

Aviation
Flights from Bengaluru to Pune, Goa and Ahmedabad were also disrupted.
Hundreds of passengers going to Mumbai were left stranded at the Kempegowda International Airport in Bengaluru on Monday, as several flights were either delayed or cancelled due to cyclone Vayu.  Some flights were diverted to Surat and Vadodara airports due to heavy rainfall and resulting low visibility at Chhatrapati Shivaji International Airport in Mumbai.  Vistara flight UK 866 and SpiceJet flight SG 456 between Bengaluru and Mumbai were diverted. AirAsia I5*334 and I5*306, Indigo flights 6E 6794 and 6E 566, Vistara flight UK*854 and Go Air flight G8 526, were among the flights cancelled, said a Times of India report.  Flights from Bengaluru to Pune, Goa and Ahmedabad were also disrupted. Meanwhile media reports said that flight schedules between the UAE and India were unaffected until Tuesday. The Union Home Ministry on Tuesday issued detailed advisories to Gujarat and the Union Territory of Diu, requesting them to take all precautionary measures to ensure that no human life is lost in view of cyclone Vayu which is likely to hit Gujarat on Thursday. According to private weather forecasting agency Skymet, the cyclone has turned into a very severe cyclone at 8:30 am on Wednesday. It will make landfall on the coast of Gujarat shortly with the areas of Kutch, Devbhoomi Dwarka, Porbandar, Rajkot, Junagarh, Diu, Gir Somnath, Amreli and Bhavnagar likely to be affected. The Indian Meteorological Department (IMD) in its last bulletin on Tuesday said cyclone Vayu is very likely to intensify further into a Very Severe Cyclonic Storm by 2:30 am. “It is very likely to move nearly northwards and cross Gujarat coast between Porbandar and Mahuva around Veraval and Diu region as a Very Severe Cyclonic Storm with wind speed 140-150 kmph gusting to 165 kmph during early Wednesday morning,” the IMD bulletin said. More than 3 lakh people have been evacuated in Gujarat after a red alert was issued by the Natural Disaster Monitoring Centre.        
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Halal ponzi scheme: 6 directors of IMA surrender to Bengaluru police

Crime
Hundreds of IMA’s investors had thronged its offices in central Bengaluru in fear of losing their investments after an audio clip of the MD went viral.
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Six directors of the I Monetary Advisory (IMA), a ‘halal ponzi scheme’, have surrendered to the police in Bengaluru on Tuesday, a day after the company grabbed the headlines. The surrender came a day ahead of the government forming a special investigating team to nab the culprits. According to Deccan Chronicle, Nasir Hussain, Naveed Ahmed Nattamkar, Nizammuddin Azeemuddin, Afshan Tabassum, Afsar Pasha and Arshad Khan were among those who surrendered.  However, Mansoor Khan the Managing Director of the company is absconding. Since Monday hundreds of IMA’s investors have thronged its offices in central Bengaluru in fear of losing their investments after a WhatsApp audio, purportedly that of IMA’s MD Mansoor Khan threatening suicide had gone viral. Fearing loss of money deposited in schemes, hundreds protest against Bengaluru's IMA Jewels In the audio which was also sent to the City Police Commissioner, Mansoor is heard saying that the Shivajinagar Congress MLA, Roshan Baig (although he did not explicitly raise his name in the clip), had taken Rs 400 crore from him to contest the 2019 Lok Sabha Elections. The issue became so big that even the Chief Minister of Karnataka HD Kumaraswamy was also forced to react and he directed Home Minister MB Patil to take stock of the situation. "A Special Investigation Team (SIT) is being set up to inquire into complaints by hundreds of investors that IMA Jewels has stopped returning their deposits and paying hefty interest on them,” Patil told reporters after a meeting with top police officials. According to The New Indian Express, the team will be handpicked today and will be headed by an officer of ADGP rank. Following that the SIT will issue a request with the Interpol to apply a red corner notice to nab Mansoor who has allegedly fled to Middle East, the report said . Meanwhile, as earlier reported by TNM, police have booked Mansoor and four other directors for cheating and criminal breach of trust based on more than 7,500 complaints. With the allegation against Roshan Baig and majority of the victims being Muslim, the Congress also went into a hurdle with MLAs of the Muslim community holding a meeting with the Home Minister. The IMA issue is one of the biggest ponzi schemes to have surfaced in Bengaluru. It is similar to the Ambidant scheme where Muslims are the majority if not the only victims of these schemes. Bengaluru ‘halal’ ponzi scheme victims meet top govt official, urge for intervention The scamsters took advantage of the victim’s religious beliefs. Unlike fixed bank interest rates which a section of Muslims consider to be anti-Islam, these companies sold their plans as a form of partnership business with the promise of high returns of 10-12% within a month. The plan was to lure customers to invest their life savings by staying true to the offer for the first few installments. IMA was reportedly offering 24-30% interest per annum on their savings, a dozen Muslim leaders met Patil and asked for sealing of the firm's office and seizing gold, jewellery, diamonds and cash in its showroom. "As most of the investors are ordinary people, including women from all occupations, we are worried about the safety of their savings, which are meant for the education or marriage of their children. The state government should arrest Khan and get their deposits returned with interest," State Food and Civil Supplies Minister Zameer Ahmed Khan told reporters after meeting with Patil. (IANS inputs)
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Tuesday, June 11, 2019

How slow development of Bengaluru’s Cottonpet Main Road is affecting residents

Civic issues
Dug-up roads that are poorly cordoned off, potholes filled with rainwater and a constant presence of heavy construction vehicles has made the commute unbearable.
A key 1.14-km long road that links west Bengaluru to south Bengaluru is in a shambles. Dug-up roads that are poorly cordoned off, potholes filled with rainwater and a constant presence of heavy construction vehicles has made the commute on Cottonpet main road unbearable. The main road is being reconstructed, the underground utilities are being replaced and the white-topping of the road is scheduled to be carried out. The development of the main road, which connects the GoodShed area junction to Mysuru road, was undertaken by the BBMP as part of the TenderSure project. The project, which started around February earlier this year, was slated to be completed by September but is progressing at a snail’s pace. According to BBMP’s Chief Engineer KT Nagaraja, it may take up to six more months before it can be completed. TNM visited the site of the construction and saw that the mobility of traffic on the stretch has been severely affected. The pre-monsoon showers have worsened the situation as multiple potholes are now filled with muddy water, making it difficult for people to walk on this road. With the monsoon just days away, the road may get become dangerous to travel. According to KT Nagaraja, the road’s development is part of a package that includes 6 main roads and 11 crossroads, and the agencies are tackling all the roads simultaneously. On Cottonpet road, the Bangalore Water Supply and Sewerage Board (BWSSB) is currently laying the underground drainage (UGD) line. They have assured that the work will be completed within one month. Meanwhile, the SWD (Storm Water Drain) department of the BBMP has given an assurance to complete their work within one to one-and-a-half months. After this, the work by TenderSure will start.   Why the slow progress? Mayor Gangambike Mallikarjun recently inspected the site and said that there was a delay in the work, as it depends on when the BWSSB will complete laying pipes. Stormwater drains are also simultaneously being laid by the BBMP. According to the mayor, out of 300 mt stormwater drains, 138 mt has been completed and the remaining 162 needs to be done. The Mayor agreed that there was poor coordination between BWSSB and BBMP, but BBMP’s Chief Engineer KT Nagaraja stated that conditions of the site are also a contributing factor to the slow progress. According to the Mayor, the BWSSB will complete their work soon. “The agencies concerned have assured completion of the pending works at the earliest. I have already given instructions to the concerned agencies to start the TenderSure works in the areas where work on the water and sewage lines has been done. They will probably start this work from Monday,” the Mayor said. ‘Construction affecting our businesses’ A project intended to improve the condition of the residents of the Cottenpet area has instead left them in distress. The revenues of many running businesses on the main road have been hit. “Due to the project work my business has taken losses of close to 75%,”  Nikhil Ramavath, the owner of a store located on the road, told TNM. Other stores have reported close to little business or no business at all. “There have been no customers in 6 months,” said Rakesh Sancheti, the owner of Bhawani Tea Co. When asked about the progress of the project, he said, “Sometimes they work and sometimes they don’t. I don’t understand what they are doing.” Confusion regarding the progress of the project prevails among the store owners. Palani R, the owner of Maruti Fragrance, said, “Whom do we talk to? We are scared to ask questions.” The TenderSure project, which involves laying of pipes for sewage, water and power, has also disrupted the supply of water to these stores, making some of them dependent on borewell water. A worker at Brahmin’s Bakery and Sweets, an eatery on the Cottonpet main road said, “The Cauvery water connection is cut. When we tell them they don’t do anything about it.” Hotels and lodges on the same road are facing a similar problem. Inconvenience to school children The construction work has reduced the road to a narrow, congested and dangerous path for schoolchildren. Students studying at two local schools, St. Catherine’s High School and Isaac Newton English School, have to use alternative routes like the side roads to reach the school. According to the Secretary of Isaac Newton English School, the parents find it inconvenient to use such roads to drop off their kids. “We are not fighting them (authorities), we are requesting them for the safety of children. Please do this as soon as possible,” he said. The BWSSB’s Executive Engineer of Waste Water Management (WMM) Department told TNM that they will be completing the work in the coming 10 days. “The main scope of our work is done. The only work we have left is to link the pipes in the side roads,” he said.
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Water crisis: Why residents in a Karnataka city are up in arms against the Maharashtra govt

Water
The situation has worsened this year due to a stand-off between the Karnataka and Maharashtra governments over releasing water to fill up the tanks in the Krishna basin in Karnataka.
Facing an acute water-shortage this summer, residents of Athani in Belagavi district are set to launch a protest against the Maharashtra government demanding the release of water from the Krishna river. For the past two months, residents in Athani and nearby areas, have been requesting the Maharashtra government to fill up the tanks at Krishna basin (in Karnataka) so that drinking water is available to them.    The river Krishna which originates in Maharashtra, flows through Belagavi, Bagalkote, Vijayapura in Karnataka before moving on to Hamsaladevi in Andhra Pradesh and joining the Bay of Bengal. In fact, the river has the largest watershed area in Karnataka. At Vijayapura, Almatti reservoir has been built for the river which serves as the major water resource for North Karnataka. But during summer, all the three districts in Karnataka experience severe drought as the river dries up. Subsequently, the tributaries of the river such as Ghataprabha, Hiranyakeshi, Vedaganga, Doodhganga rivers also dry up during summer leading to water shortage due to which over 250 villages in these three districts (169 alone in Belagavi district) are facing severe water crisis this summer.  "This summer, over 100 projects that are dependent on Krishna river water have also been non-functional," Shankar, a resident of Belagavi said. The situation has worsened this year due to the Maharashtra government's demand to have water in exchange of water, unlike in the last few years. From Maharashtra border to Alamatti reservoir, there are two barrages at Hirappa and Chikkapadasalagi, apart from which there are check dams. Since sugarcane fields are close to the river basin, most of the water from the river are absorbed by the sugarcane crops, further aggravating the scarcity of water. The Maharashtra government used to release 4 tmc of water by the first week of March to Karnataka. Former Chief Minister B S Yeddyurappa and Water Resources Minister DK Shivakumar had written to Maharashtra Chief Minister requesting release of water, prior to the Lok Sabha elections this year.  A delegation led by Rajya Sabha member Prabhakar Kore had met Maharashtra Chief Minister Devendra Fadnavis - after the Lok Sabha elections - requesting him to release water. "Although the delegation had stated that Maharashtra CM had agreed for it, it does not seem to be true. Karnataka CM HD Kumaraswamy who was present at Prime Minister Narendra Modi's swearing-in ceremony, recently had held a dialogue in this regard, it is learnt. But, we don't know the outcome or if we will receive water before the monsoon," Shivu Patil, a farmer from Kagwad in Athani taluk said. Drinking water but with conditions The Maharashtra government also releases water from Koyna dam. It would take one-and-a-half days for water to reach Chikkodi taluk on the border of Karnataka. The Maharashtra government had put conditions that it would release water only in exchange of water, and not money. Every year during summer, Karnataka's demand for water from this reservoir is 4 tmc. In 2013, the Karnataka government had paid Rs 4.5 crore for one tmc of water from the Koyna reservoir. Now, the value of 1 tmc of water stands at Rs 5.5 crore. In 2016-17 and 2017-18, Karnataka government had demanded 2 tmc and 4 tmc of water, respectively. The state government is yet to release Rs 33 crore to Maharashtra government. Although, the Karnataka government had agreed to release water to Sollapur from Almatti reservoir in 2017, the technical process is not yet completed. Now, the Maharashtra government is adamant that the release of water only takes place after the agreement on water to Sollapur and Sangli areas from Almatti reservoir, claim officials from the Water Resources department. Although, there is no water scarcity in the basin of river Krishna in Maharashtra, certain pockets like Sangli and Sollapur districts experience drought-like situation during summer. And both these places are close to the place where the Almatti river's backwater flows. The Tubachi Babaleshwar lift irrigation project utilises these waters. Eyeing this project, the Maharashtra Water Resources Department has demanded water from the lift irrigation project in exchange for water from Krishna river. The neighbouring state also wants to have a permanent agreement on this.  However, its counterpart in Karnataka government, the Karnataka Neeravari Nigam Limited (KNNL) is arguing that water from the lift irrigation project has already been assigned to various projects and that it needs to store more water if it has to release it for the Maharashtra government. Moreover, the Karnataka government has to lay 140 km-long pipeline up to Maharashtra border to allow water to flow. Considering all these challenges, the Karnataka government has sought to study feasibility before releasing the water. But the neighbouring state has not yet responded to these issues. "I have pressed for a permanent agreement between Karnataka and Maharashtra governments on Krishna water sharing at Council floor, many a time. When I had requested Maharashtra CM to release water, he had readily agreed too. But he has not yet honoured his words. Unless, the chief ministers of both the states come to a conclusion on this, the issue would not be resolved," observes Mahantesh Kavatagimath, Opposition Party chief whip in the Legislative Council. This has become an administrative crisis, with neither Karnataka nor Maharashtra state government ready to address their concern, at this juncture. As a result, people in Mumbai-Karnataka region (Belagavi, Bijapir, Bagalkot), where Krishna river flows, are reeling under severe water crisis. Local residents who hold their annual village fair have been forced to put-off auspicious occasions in their villages, anticipating the release of water. Especially in villages at Athani and Chikkodi, artificial ponds were created to allow people to take bath during religious fairs. “These fares and celebration are very close to local people, and the government is aware of it, yet it is not showing any response. If this continues, it would certainly lead to another protest like Mahadayi,” says Manjunath Patil,  an advocate from Chikkodi. (Story by Story Infinity (Subs and Scribes Media Ventures LLP.)
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