Panel begins probe into fund ‘misappropriation’ by Karnataka BJP MLA

A committee headed by judge BS Vastradmath has began an investigation into the alleged misappropriation of funds at Laila Sugars in Belagavi district.

A committee headed by judge BS Vastradmath has began an investigation into the alleged misappropriation of funds at Laila Sugars in Khanapur taluk in Belagavi district, which Khanapur BJP MLA Vithal Halgekar is operating on a lease basis, people aware of the matter said.

Judge Vastradmath said that the committee would submit its investigation report to the government within 30 days.

Based on her complaint by former Khanapur Congress legislator Anjali Nimalka, the state government formed an investigating team last week, with Belagavi District Principal and Sessions Court Judge BS Vastradmath serving as the chairman.

Anjali, who represented the constituency in the last assembly, claimed that after becoming the legislator, Halgekar obtained the rights to run Laila Sugars on a 10-year lease. He transferred ₹600 crore as a loan from his own Shri Mahalakshmi Sugars Private Limited to the sugar factory. After the loan transfer, he allegedly misappropriated the funds.

Anjali said that trusting the firm, thousands of farmers, mainly sugarcane growers, opened accounts and deposited money in the MLA’s firm, which he later transferred to the sugar mill and allegedly misappropriated. “To prevent innocent farmers from becoming financial victims, I brought the matter to the government’s attention and filed a complaint against MLA Halgekar,” Anjali said.

The head of the investigating committee, Judge Vastradmath, who inspected the sugar mill, told reporters that all members of the sugar mill management committee attended the meeting called in the factory’s meeting hall and assured cooperation with the enquiry. “The chairman of the factory, who is also a legislator, didn’t attend the meeting due to the assembly session. He may attend the next meeting,” the judge said.

In response, Halgekar, during the lunch break of the assembly session, told HT that he had informed the investigating committee about his absence and assured attendance at the next hearing. Regarding the misappropriation of funds allegation, he said that the accusations levelled by Anjali are false and baseless. “I’m ready to face any inquiry and am confident of coming out with a clean chit,” Halgekar said.

Halgekar, representing the constituency for the first time, is the only candidate among the six whom former minister, Gokak BJP MLA Ramesh Jarkiholi, fielded in the assembly election.

Judge Vastradmath said that the committee would submit its investigation report to the government within 30 days.