The Enforcement Directorate (ED), Bengaluru Zonal Office, has arrested B Nagendra, the former Minister of Scheduled Tribal Welfare and Youth & Sports of the Karnataka government, on July 12, 2024. This arrest, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, is part of an ongoing probe into the misappropriation of funds totaling Rs. 89.62 crore from the Karnataka Mahrishi Valmiki ST Development Corporation Limited.
Investigation and Arrest
The ED’s investigation was initiated based on FIRs registered by the Karnataka Police and the Central Bureau of Investigation (CBI) following the tragic suicide of Corporation employee Chandrashekhar on May 26, 2024. The probe uncovered that approximately Rs. 90 crore were diverted to 18 fake accounts in Andhra Pradesh & Telangana. These funds were then layered through shell accounts, with cash and bullion dispersed among the accused.
B Nagendra resigned from his ministerial position following the exposure of the scam. During the investigation, it was revealed that a substantial amount of the misappropriated funds were used to procure a significant quantity of liquor just before the general elections. High-end vehicles, including a Lamborghini, were also purchased using the proceeds from the scam.
Search and Seizure Operations
On July 10, 2024, the ED conducted extensive search and seizure operations across 23 premises in four states, uncovering crucial evidence. Incriminating documents were recovered from B Nagendra’s and Basanagouda Daddal’s (Corporation’s Chairman) premises, linking them to the handling of diverted funds during the recent general elections.
Legal Proceedings
B Nagendra was produced before the Hon’ble Special Court for MPs and MLAs, which granted ED custody until July 18, 2024. The ED continues to investigate the complex network of fund diversion, aiming to uncover the full extent of the misappropriation and bring all involved parties to justice.
This high-profile arrest underscores the ED’s commitment to combating money laundering and corruption, ensuring accountability among public officials, and safeguarding public funds.
