Karnataka’s Rural Development Ministry has launched a 30-day investigation into unauthorized bank transactions in gram panchayats that transitioned to urban local bodies. The probe focuses on Bidar district, specifically looking for the misuse of official seals and signatures. The government has warned of potential police action if financial irregularities or administrative lapses are discovered during the inquiry.
The Karnataka state government has initiated a 30-day investigation into allegations of unauthorized banking operations by gram panchayats that have already been converted into urban local bodies. Rural Development and Panchayat Raj Minister Eshwar Khandre ordered the probe following reports that some of these units continued to carry out financial transactions long after their administrative merger with municipal corporations or town councils.
The investigation is centered on whether these former rural units processed payments or used official seals and signatures without legal authority. The audit aims to determine if public funds were mismanaged or diverted after the transition, as these gram panchayats were no longer authorized to operate under rural administrative rules.
A primary focus of the inquiry is in the Bidar district, specifically involving the Kolar, Aliyabad, and Amalapur gram panchayats. Reports suggest that these entities kept their bank accounts active and continued to sign documents even after their formal inclusion under the jurisdiction of the Bidar City Municipal Corporation. The state government is treating these reports seriously, and officials have indicated that documentation related to these transactions will undergo forensic testing to verify the authenticity of seals and signatures.
The government has announced a strict approach to the findings. Minister Khandre has directed the immediate suspension of any personnel found involved in these administrative lapses. If the investigation confirms systemic financial irregularities, the state government intends to take further legal steps, including filing formal police complaints against the employees and bank staff involved in authorizing the transactions.
This investigation highlights the importance of administrative accountability during the transition of local government structures. The results of this 30-day review will determine the next steps for oversight in these regions and whether current systems for tracking government funds are sufficient to prevent unauthorized usage during administrative shifts.