The Enforcement Directorate (ED) has launched a series of searches spanning four states, including Karnataka, Andhra Pradesh, Telangana, and Maharashtra, as part of a money laundering investigation linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. Former Karnataka minister and Congress leader B Nagendra, along with Congress MLA B Daddal, are among the prominent figures targeted in this probe, according to official sources.
The ED conducted raids at approximately 20 locations, including residences and offices connected to Nagendra and Daddal, as well as bullion operators in Mumbai and other linked entities. The searches, carried out under the Prevention of Money Laundering Act (PMLA), were accompanied by an armed escort of the CRPF, reflecting the seriousness of the investigation.
During the searches, documents and computer hardware were seized, and Nagendra’s personal assistant was brought in for questioning at the ED’s Bengaluru office. Both Nagendra and Daddal have been under scrutiny following allegations of financial misconduct within the Corporation, which surfaced after the suspicious death of Corporation’s accounts superintendent Chandrasekharan P, who purportedly left a suicide note implicating illegal money transfers.
The scandal, amounting to an alleged transfer of ₹187 crore from the Corporation’s account, has drawn attention from multiple investigative bodies. The Karnataka government’s Special Investigation Team (SIT) has already made 11 arrests in connection with the case, while the Central Bureau of Investigation (CBI) has initiated its own investigation based on a complaint from the Union Bank of India.
Responding to the ED raids, Karnataka Chief Minister Siddaramaiah emphasized that his government would not interfere with the ED’s proceedings and urged the agency to act according to the law. Meanwhile, State BJP chief B Y Vijayendra welcomed the ED’s actions, describing the scandal as unprecedented in the state’s history and alleging misuse of funds intended for Scheduled Tribes communities.
The ED’s search operation underscores ongoing efforts to uncover the truth behind the financial malfeasance allegedly committed within the Valmiki Corporation, signaling a pivotal moment in the investigation into one of Karnataka’s most significant financial scandals in recent memory.
Sources By Agencies