From Our Special Correspondent

Daijiworld Media Network

Bengaluru, Jul 14: A Rs 4.64 crore fraud in the supply of raw materials to the Stare-owned Karnataka Soaps and Detergents Ltd (KSDL) by a private firm has been unearthed by the State Legislature Committee on Public Undertaking.

The Public Undertakings Committee, in its report tabled in the State Assembly on Tueday, said the KSDL paid Rs 4.64 crore to Balaji Food Processing Industries Ltd, Bengaluru, which had supplied lesser quantity of raw materials by dishonouring the agreement.

The committee’s report said despite instructions from KSDL, the Corporation Bank released money to the firm.

Now, the firm had been black listed and cases have been registered.

P Ravi, Deputy General Manager of KSDL been suspended from service.

The committee headed by Malikyya V Guttedar (Congress), which grilled officials of the KSDL, said bad internal administration was the major reason for the payment of money to the firm which had not honoured the agreement signed with the KSDL.

The committee questioned the duties and responsibilities of the managing director of KSDL and said the deputy general manager was indulged in the fraud.

Writ petitions had been field against Corporation Bank and the private firm in the High Court.

The committee has recommended recovery of money.