Key Takeaways
- The Enforcement Directorate ED is investigating a major money laundering case in Karnataka involving the Valmiki Corporation scam.
- Former Karnataka minister and Congress leader B Nagendra is being questioned by the ED in connection with the scam.
- The scam allegedly involved the misappropriation of funds worth Rs 187 crore, which were meant for the welfare of tribal people in Karnataka.
Bengaluru: The Enforcement Directorate (ED) has taken former Karnataka minister and Congress leader B Nagendra for questioning in connection with the Valmiki Corporation scam case.
This action follows two days of extensive searches at multiple locations, including his premises. “I’m being taken from my home… I have no idea what’s happening,” Nagendra told reporters on the way to the ED office.
This development comes after the ED’s investigation into a money laundering case linked to the alleged scam.
This development follows the ED’s investigation into a money laundering case related to the alleged scam. It also comes after the ex-minister’s personal assistant, Harish, and his personal secretary, Devendrappa, were questioned for over 18 hours on Thursday in Nagendra’s presence. They were taken in for questioning late at night by ED officials.
The case gained attention after the death of P Chandrasekharan, the accounts superintendent of the Corporation, on May 21. A purported suicide note left by Chandrasekharan accused several officials of orchestrating illegal money transfers from the Corporation’s accounts to various other bank accounts.
In the wake of these allegations, two officials were suspended, and Nagendra, who served as the Scheduled Tribes Welfare Minister, resigned from his ministerial post on June 6.
The Congress government in Karnataka formed a Special Investigation Team (SIT) to probe the matter, resulting in the arrest of 11 individuals connected to the case.
Chandrasekharan’s suicide note alleged the unauthorised transfer of Rs 187 crore from the state-run Corporation’s bank account, with Rs 88.62 crore reportedly funneled illegally into the accounts of several IT companies and a Hyderabad-based cooperative bank.
The Central Bureau of Investigation (CBI) is also probing the matter based on a complaint by the Union Bank of India.
State BJP President Vijayendra Yediyurappa welcomed the ED raids on Nagendra and another individual, Basanagouda Daddal, stating, “This is likely one of the largest scams in the state’s history. Funds intended for ST communities have been diverted to other states for election purposes and for the Lok Sabha polls.”
Senior BJP leader B Sriramulu alleged on Thursday that the scamsters involved in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation case honey-trapped government and bank officials to misappropriate funds.
He claimed that luxury cars were purchased with the money meant for the welfare of tribal people, and the laundered money was used in various elections, including the Lok Sabha election.
With the monsoon session of the Karnataka assembly approaching, the BJP plans to lay siege to Vidhana Soudha to protest against the policies of the Congress government.
“This government is mired in scams — including the MUDA scam, Valmiki Corporation scam, SCSP TSP scam, and Labour department scam. It has a record of numerous scams and no development,” said state BJP General Secretary Sunil Kumar.
