Former Karnataka minister B Nagendra taken into ED custody over money laundering probe

Valmiki corporation scam: Ex-minister Nagendra taken to ED office after two days of search at his house

The Enforcement Directorate (ED) has taken former Karnataka Minister B Nagendra into custody as part of a money-laundering investigation linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. According to official sources, the Congress MLA was taken from his residence to the ED office for questioning.

Nagendra, who resigned as the Scheduled Tribes Welfare Minister on June 6 following the allegations, stated, “I’m being brought from my home…I don’t know anything,” as he was escorted to the ED office.

The ED has been conducting searches over the past two days at multiple locations, including Nagendra's premises and those of ruling Congress MLA Basanagouda Daddal, the Chairman of the Corporation. The searches spanned around 20 locations in Karnataka, Andhra Pradesh, Telangana, and Maharashtra. The case has been registered under the Prevention of Money Laundering Act (PMLA).

The investigation was triggered by the suicide of the Corporation's accounts superintendent, Chandrasekharan P, on May 26. He left a note revealing unauthorized transfers of Rs 187 crore from the Corporation's bank account, with Rs 88.62 crore allegedly moved to accounts linked to well-known IT companies and a Hyderabad-based cooperative bank.

In his note, Chandrasekharan named the Corporation’s suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal.

He also mentioned that a "Minister" had issued oral orders for transferring the funds. In response to the scandal, the state government has formed a Special Investigation Team (SIT) led by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID).

The SIT questioned Nagendra and Daddal on Tuesday regarding the case.

Additionally, the Mumbai-headquartered Union Bank of India has filed a complaint with the CBI about the embezzlement of funds from its MG Road branch. The CBI has initiated an investigation into the matter.