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August 31, 2025

Rs 72-Crore Scam Uncovered: Ex-Clerk With Rs 15K Salary Found With Crores in Assets

The CSR Journal Magazine

In a major anti-corruption operation, Karnataka Lokayukta officials have uncovered one of the state’s most shocking cases of disproportionate wealth, exposing how a low-paid government employee allegedly amassed assets worth over Rs 30 crore through fraudulent means.

The spotlight is now on Kalakappa Nidagundi, a former clerk at the Karnataka Rural Infrastructure Development Limited (KRIDL), who was reportedly employed on a daily wage of Rs 15,000 per month. Acting on a court-sanctioned warrant, investigators searched his residence and found that he owned an extraordinary collection of properties — including 24 houses, four land parcels, and 40 acres of farmland.

The raid also led to the seizure of four vehicles, 350 grams of gold, and 1.5 kilograms of silver. According to officials, these assets were held not only in Nidagundi’s name but also under his wife’s and brother-in-law’s names, raising suspicions of deliberate concealment.

Authorities suspect that Nidagundi did not act alone. He is believed to have conspired with Z M Chincholkar, a former engineer at KRIDL, to embezzle government funds. The duo is accused of creating fictitious bills and documentation for 96 infrastructure works that were either partially done or never executed. This fraudulent operation is estimated to have siphoned off over Rs 72 crore.

The local legislator, Koppal MLA K Raghavendra Hitnal, responded to the revelations stating, “The government is treating the issue with due seriousness and will ensure a comprehensive inquiry is conducted so that appropriate action can be taken.”

Broader Operation Targeting Government Officials

The Lokayukta’s raid on Nidagundi is part of a larger state-wide crackdown on officials suspected of accumulating illegal wealth far beyond their official income.

Earlier this week, raids were carried out across four districts — Hassan, Chikkaballapura, Chitradurga, and Bengaluru — targeting five other officials:

  • Jayanna R, Executive Engineer, National Highways Authority of India (NHAI), Hassan

  • Anjaneya Murthy M, Junior Engineer, Rural Drinking Water and Sanitation Department, Chikkaballapura

  • Dr Venkatesh, Taluk Health Officer, Hiriyur (Chitradurga)

  • N Venkatesh, Revenue Officer, BBMP Dasarahalli Sub-division, Shettihalli, Bengaluru

  • K Om Prakash, Senior Assistant Horticulture Director, BDA Head Office, Bengaluru

This came shortly after a major sweep on July 23, when Lokayukta teams searched 41 properties across six districts, including Bengaluru Urban, Mysuru, Tumakuru, Kalaburagi, Koppal, and Kodagu, in connection with disproportionate assets cases.

Senior Bureaucrat Also Under the Scanner

Among the high-profile names investigated was IAS officer Vasanthi Amar B V, who holds the position of Special Deputy Commissioner at the Railway Infrastructure Development Company (K-RIDE). She is also in charge of land acquisition for the Bengaluru Suburban Railway Project (BSRP).

Raids conducted at five locations linked to Vasanthi yielded wealth estimated at Rs 9.03 crore. The assets included three sites, four houses, and three acres of farmland, reportedly valued at Rs 7.4 crore, along with ornaments worth Rs 12 lakh and vehicles valued at Rs 90 lakh.

The Lokayukta continues to pursue cases of illegal wealth accumulation among public servants, vowing to bring corrupt officials to justice and restore public trust in government institutions.

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