Everything About Karnataka COVID-19 Scam That Triggers Political Storm In Karnataka

ETV Bharat outlines some of the key details elements and developments in the alleged scam, from the C'unha Report, SIT, and registration of an FIR.

Bengaluru:The Vidhana Soudha Police Station in Karnataka registered a case on Friday in connection with alleged irregularities in the management of the COVID-19 pandemic in the state. It was filed on a complaint by the Chief Accounts Officer at the Directorate of Medical Education (DME), Dr M Vishnu Prasad, against several top officials in the health department and two private firms.

The FIR charges the accused under sections 403 (dishonest misappropriation of property), 406 (criminal breach of trust), 409 (breach of trust by a public servant), and 120B (criminal conspiracy) of the Indian Penal Code (IPC) in addition to the violations of the Karnataka Transparency in Public Procurement (KTPP) Act 1999.

Key Allegations

Prasad alleged that former Director, DME, PG Girish, officers Ragu GP and N Muniraju, “other government officers and people’s representatives” violated the KTPP Act while procuring N95 masks, personal protection equipment (PPE) kits, and other materials that were essential for the prevention of COVID-19 through the DME.

The FIR named two private companies, Laj Exports and Prudent Management Solutions, as partners in the fraud activity but didn’t name any politicians.

It indicates that PPE kits, available domestically for Rs 330–400 per unit, were procured at inflated rates ranging between Rs 2,049 and Rs 2,117 per unit.

Similarly, the complaint alleges misappropriation of over Rs 167 crore in purchases of N95 masks during 2020-2021. It also claimed that over Rs 7 crore were reportedly disbursed to non-ICMR-accredited laboratories without proper agreements, further adding to the irregularities.

Government’s Response

The action has been taken on the basis of the recommendations of an inquiry panel headed by Justice John Michael D'Cunha, who said that large-scale corruption has taken place in the COVID management.

In November this year, the Siddaramaiah government in Karnataka formed a Special Investigation Team (SIT) to investigate the alleged COVID-19 scam during the previous Bharatiya Janata Party (BJP) government. The cabinet had decided to take further action based on the interim report of the retired Justice D’Cunha Commission.

Deputy Chief Minister DK. Shivakumar stated that the investigation aims to ensure accountability and recover the misused funds. “The SIT will leave no stone unturned to prosecute those responsible,” he said.

The Justice D’Cunha Commission’s report highlighted irregularities in procurements worth Rs 7,223 crore by multiple state entities, including the DME, the National Health Mission (NHM), and the Bruhat Bengaluru Mahanagara Palike (BBMP). The report revealed violations such as awarding contracts without competitive bidding and payments made to unqualified labs.

Last month, the state Health Minister Dinesh Gundu Rao claimed that the D'Cunha Commission report has recommended the prosecution of former Chief Minister BS Yeddyurappa and former minister Sriramulu.

Key Findings By D’Cunha Commission

The report reveals criminal aspects of the alleged scam and recommends recovery of Rs 500 crores from implicated parties.

After reviewing around 55,000 papers from various departments and organisations, the panel found the involvement of many firms and recommended that they be blacklisted.

The D-Cunha report also pointed to a lack of cooperation from some officials during the investigation, which delayed the probe. ​

Political Fallout

In response to the probe, the BJP dismissed the allegations as politically motivated. Former Chief Minister BS Yediyurappa and other leaders said the decisions taken during the COVID-19 pandemic were in good faith as the whole country was under the grip of an unprecedented health crisis.

BJP MP Jagadish Shettar accused Congress of using the FIR as a distraction from its governance challenges, citing alleged irregularities in other areas such as the MUDA scam.

On the other hand, Congress slammed the BJP for systemic corruption, with CM Siddaramaiah saying the government was committed to unearthing corruption of the previous government and ensuring justice for Karnataka’s citizens.

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