Another multi-crore scam comes to light, MLA Araga Jnanendra demands probe

CH NEWS SHIVAMOGGA MLA Araga Jnanendra demanded an investigation by the ED or CBI into this scam, which reportedly exceeds Rs 800 crore over the last three years. He further urged Labour Minister Santosh Lad to accept moral responsibility and resign from his Ministerial post. Speaking at a press conference on Wednesday, Jnanendra noted that the Labour Department holds over Rs 7,000 crore collected through the construction cess. He alleged that funds meant for unorganised sector workers have been siphoned off under the guise of preventive health check-ups over the past two to three years. While Rs 2,950 is allocated annually per worker for health check-ups, he criticised the Labour Department for misleading the public by claiming to have spent Rs 800 crore to screen 27.13 lakh workers across the state through 81 work orders. The scheme includes provisions for screening for 20 major diseases and 60 secondary conditions, as well as HIV/AIDS testing for every worker. Each unit is required to have a doctor and a laboratory facility. Furthermore, there is a mandate to obtain clearance from the Pollution Control Board for bio-waste disposal and to ensure third-party inspection of the screening process. However, it was alleged that the department failed to adhere to any of these rules, resulting in a complete violation of labour laws. Regarding the Rs 800 crore expenditure, payments were made through a mix of cheques and cash transactions. Some cheques issued for expenses were routed to banks in distant Delhi, while others went to banks in neighbouring Kerala. Observing that the modus operandi appears similar to the Valmiki scam, it was noted that while claims were made about screening one lakh people in the district, including in Shivamogga's Thirthahalli, at a cost of Rs 30 crore, no such screening actually took place in Thirthahalli. The allegation is that a massive sum of money was siphoned off through the creation of fabricated documents.

MLA Araga Jnanendra pointed out that any tender exceeding Rs 10 crore requires Cabinet approval. It was alleged that to circumvent regulations, an exemption was obtained under Section 4(A) of the Labour Act, a format contrary to the KTPP Act was devised and tenders were awarded to preferred contractors, initially to three agencies and subsequently to five individuals.