Bengaluru: The Rural Development and Panchayat Raj department has decided to appoint a vigilance officer of IPS rank to monitor the flow of funds for the central government flagship programmes.

This follows the illegal stashing of Rs 1,335 crore funds in 101 accounts in the Syndicate Bank branch at the office of the BWSSB on KG Road in Bengaluru.

With this, the amount parked illegally in various banks almost touches a whopping Rs 2,000 crore. The department had earlier found Rs 1,335-crore parked in various banks. The money belongs to the Rural Water Supply Department that comes under the RDPR department.

Rural Development and Panchayat Raj Minister H.K. Patil had asked Mr Punati Sridhar, an IAS officer and executive director of the Mahatma Gandhi Institute of Rural Energy and Development, to probe the matter. The committee said Rs 1,335 crore had been parked illegally in banks.

A detailed report was submitted to Chief Minister Siddaramaiah who ensured transferring back of Rs 612 crore parked in private banks to the State treasury.

Now the department has decided to appoint an IPS officer as vigilance officer who will monitor the flow of funds received for the central programmes. "We have written to the state government seeking posting of an IPS officer", sources added.