Bengaluru, Jan 30 (IANS): A plea has been submitted to Karnataka Governor Thawar Chand Gehlot seeking consent to file a complaint with the Lokayukta Special Court against Minister for Cooperation K.N. Rajanna over appointment of a retired officer facing alleged corruption charges for a key post in spite of availability of efficient IAS officers in the department.

RTI activist Dinesh Kallahalli stated on Tuesday that he has sought consent to file a private complaint and demand probe under the provisions of the Prevention of Corruption Act and IPC over appointment of a retired officer facing serious corruption charges for a prominent post.

"The complaint was lodged on September 29, 2023 in this regard. The latest development is that the office of the Governor has sent the file for further action to the office of the Chief Secretary of the Government of Karnataka."

“The efficient IAS officers within the department are not considered and a retired officer preferred for the post. There is strong suspicion of vested interest behind the appointment,” the complaint states.

In the complaint, it is alleged that Minister Rajanna has appointed C.N. Devaraj to the post of Managing Director of Karnataka State Cooperative Apex Bank located in Chamarajpet in Bengaluru on contract basis for a period of 11 months.

“It is proved in the investigation that Devaraj, on the capacity of MD of Karnataka State Apex Bank earlier had allegedly disbursed loans to private people, commercial institutes and trusts without taking surety.”

The complaint also alleges that Devaraj had given away loans amounting to hundreds of crores to construction companies, sugar factories and gold jewellery shops violating norms and not taking surety.

“There is a possibility of rampant corruption and mischief behind the appointment of Devaraj to the Karnataka State Cooperative Apex Bank by the Minister Rajanna. I seek the consent to file a private complaint against him,” the complaint states.

“Devaraj, then CEO of Karnataka State Cooperative Apex Bank and Minister Rajanna, then President of the same bank, during their tenure had allegedly violated rules of the bank and disbursed loans to the amount of Rs 2,000 crores. This had come to light in the audit report. The loan was not utilised for the purpose it was taken and was used for personal and other purposes.

The interest and loan amount is not paid by the parties within time. The registrar of Cooperative Societies had written a letter to the Principal Secretary of the Cooperative Department for a high level probe in this connection,” Dinesh Kallahalli has explained in the complaint.

Minister Rajanna is protecting Devaraj and cooperating for practice of corruption. If Minister Rajanna is investigated, many illegalities will come out and hence the permission for lodging a private complaint against him is sought, the complaint alleged.