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Police crack false payment racket in Vijayapura sugar factory

News RoomBy News RoomJuly 6, 2026Updated:July 6, 20264 Mins Read
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For six long years, the hardworking sugarcane farmers of Vijayapura were unwittingly caught in a sophisticated web of deceit. What began as a routine suspicion within the Nandi Sugar Factory blossomed into the unsettling discovery of a massive, systematic fraud. The factory’s General Manager, Ashok Tippareddy, first raised the alarm when internal discrepancies in the sugarcane weighing department caught his eye. He suspected that one of his own employees, Dharappa Dundappa Navi, had been manipulating the weighing process to divert factory funds into private pockets. While the initial report estimated a loss of ₹1.8 crore, that figure was merely the tip of a much more treacherous iceberg.

The investigation, treated as a top priority by Superintendent of Police Laxman Nimbargi, quickly peeled back the layers of a far deeper corruption. A special task force, led by Additional SP Ramanagouda Hatti and Deputy SP T.S. Sulpi, delved into years of financial records and operational logs. What they uncovered was a dark business model orchestrated by an eight-member gang hailing from across Vijayapura, Bagalkot, and Belagavi. By the time the dust settled, the investigators revealed that these individuals had not just stolen from a corporation, but had siphoned an staggering ₹12 crore, leaving countless farmers questioning the integrity of the very industry they sustain with their labor.

The gang’s modus operandi was both meticulous and brazenly deceptive. They exploited the trust inherent in the factory’s daily operations, colluding with both permanent and contract staffers to manufacture a reality that didn’t exist. They created exhaustive false lists of farmers, fake transport chits representing nonexistent truckloads of sugarcane, and bogus billing records. Once the system was fooled into believing this phantom sugarcane had been delivered, the conspirators funneled the procurement payments directly into the accounts of their own friends and associates. It was a digital and bureaucratic shell game that allowed them to profit off the sweat of honest agricultural workers for over half a decade.

The scope of this crime suggests a deep-seated criminal mindset, as several of the eight arrested—Dharappa Navi, Birappa Basappa Gadadar, Yallappa Basappa Gadadara, Prakash Siddaling Gaddi, Paramanand Pundalik Gaddi, Mahadev Siddaling Kamble, Balappa Pandu Chopade, and Prabhakar Madhukar Singhe—were not novices. In fact, some had histories of similar offenses at other sugarcane factories, indicating that this was not merely a lapse in judgment, but a specialized criminal career. The police noted that these individuals had essentially turned the exploitation of agricultural infrastructure into a repetitive, calculated trade, jumping from one factory to the next whenever the environment proved ripe for theft.

Despite the monumental scale of the embezzlement, the swift and coordinated response of the District Police has brought a glimmer of hope to the affected farming community. The investigative team worked tirelessly to track the flow of illicit money, successfully freezing bank accounts holding ₹11.32 crore. While the investigation remains active as authorities piece together the full breadth of the syndicate’s activities, this recovery represents a massive blow to the perpetrators. It is a rare and significant victory for those who have spent years being cheated, as it demonstrates that the law is finally catching up to those who viewed the fruits of farmers’ labor as easy pickings.

In the aftermath of the arrests, Superintendent Nimbargi extended his commendations to the extensive team of officers who turned the tide against the racketeers. From the meticulous forensic accounting to the field arrests, members like Basanagowda B.M., S.R. Hiregana, and their colleagues proved that dedication to justice can dismantle even the most complex white-collar conspiracies. For the farmers of Vijayapura, this case serves as a painful reminder of the importance of oversight, but also a reassurance that their protection is being taken seriously. As the legal proceedings move forward, the community watches closely, hoping that this crackdown on corruption will usher in a new era of transparency for the sugar industry.

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