KPCC chief in dock over flood relief fund

Karnataka Congress chief R V Deshpande seemed headed for serious trouble on Tuesday with the party High Command taking a grim view of the alleged misuse of funds collected...

Karnataka Congress chief R V Deshpande seemed headed for serious trouble on Tuesday with the party High Command taking a grim view of the alleged misuse of funds collected for relief and rehabilitation of people affected by floods in north Karnataka last year.

Out of Rs 23 million that was estimated to have been collected under the KPCC Flood Relief Fund,less than 50 per cent was spent on the intended relief and rehabilitation. While 7.5 million was placed under fixed deposits,the remaining amount was spent on paying salaries of the staff,buying an air ticket,issuing advertisements,etc.

Congress sources said that Deshpandes continuance in the post had become untenable after the controversy,which has caused embarrassment for the party. Although the KPCC chief was learnt to have spoken to Central leaders denying the allegations,sources said that the Central leadership was not impressed by his clarification.

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The KPCC spent Rs 11.08 million on purchase of flood materials to send them to flood-affected districts. On December 29,2009,the KPCC placed Rs 7.5 million out of the remaining money into fixed deposits,as per the statement of account of KPCC Relief Fund in Canara Bank,Madhavanagar,Bangalore. Over Rs 4 million was utilised for office expenditure between December 2009 and May 2010. The expenditures included advertisements,an air ticket for senior party leader MV Rajashekaran,car rentals,T-shirts,banners,and stickers,among others.

Deshpande had convened a press conference in Bangalore on Monday to deny the allegations and justify payments.