Former Karnataka Minister B Nagendra Detained By ED In Valmiki Corporation Scam Case

Update: 2024-07-12 11:08 IST

The Enforcement Directorate (ED) has taken former Karnataka minister and Congress leader B Nagendra into custody in relation to the Valmiki Corporation scam case. Nagendra, a Congress MLA, was escorted from his residence to the ED office in Bengaluru for questioning, as reported by PTI.

"I'm being brought from my home...I don't know anything," Nagendra told reporters as he was being taken to the ED office.

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This development comes days after the ED conducted extensive searches at Nagendra's premises as part of a money laundering probe linked to the alleged scam. The investigation began after the death of Chandrasekharan P, 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. Following this, two officials were suspended, and Nagendra, who was the Scheduled Tribes Welfare Minister, resigned from his ministerial post on June 6 under mounting pressure.

In response to the scandal, the Congress government 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 unauthorized transfer of ₹187 crore from the Corporation’s bank account, with ₹88.62 crore reportedly funneled into the accounts of several IT companies and a Hyderabad-based cooperative bank.

The Central Bureau of Investigation (CBI) is also investigating the matter based on a complaint by the Union Bank of India.

State BJP chief B Y Vijayendra commented, "We welcome ED raids on Nagendra and Daddal," calling it a significant scam. He alleged that funds meant for ST communities were misused for elections and the Lok Sabha polls.

Senior BJP leader B Sriramulu further claimed that the scamsters involved in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation case used honey traps to misappropriate funds. He alleged that money meant for the welfare of tribal people was laundered and used to purchase high-end luxury cars and fund various elections, including the Lok Sabha election.

As a result, a contentious monsoon session of the Karnataka assembly is anticipated, with the BJP planning to protest against the Congress government's policies.

State BJP General Secretary Sunil Kumar criticized the Congress government, stating, "This is the government of scams -- with MUDA scam, Valmiki Corporation scam, SCSP TSP scam, Labour department scam -- this government has a chain of scams to its credit. This is a zero development government."

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