Financial scam detected in planned KSRTC township

Bengaluru: The Registrar of Cooperative Societies has reportedly found a scam of more than Rs 10 crore in the KSRTC Employees’ Cooperative Housing Society (KECHS) township planned to be built in Nelamangala.

The KECHS proposed to build a township – Sarige Nagar – for its members.

An agreement was signed between the KECHS, the Karnataka Housing Board (KHB) and Supreme Associates, a company contracted to purchase the 110 acre land for KHB and develop the township, in 2006.

However, new office-bearers in 2011 transferred about Rs 14 crores to Supreme Associates and the company only transferred only 72 acres to KHB.

It was learnt during the investigation by the Deputy Registrar of Cooperative Societies, N Venkatesh, that the then president of the KECHS Manjunath’s brother Lakshminarayana was a partner in the company.

Additionally, in a separate case registered at the Wilson Garden police station, the investigation found that a little more than 5 acres of the land is registered in the name of another partner in the company.