Ex Karnataka Minister B Nagendra diverted Rs 90 Cr to AP, Telangana
ED investigation revealed that approximately Rs 90 Crore were diverted to 18 fake accounts in Andhra Pradesh, Telangana.
By Newsmeter Network Published on 17 July 2024 2:16 PM GMT
Hyderabad: Former Karnataka Minister B Nagendra, diverted 90 Crores to Andhra Pradesh and Telangana through shell accounts.
On July 12, the sleuths of Enforcement Directorate, have arrested the former Minister of Scheduled Tribal Welfare and Youth & Sports of the Karnataka government B Nagendra, under the provisions of Prevention of Money Laundering Act (PMLA).
The case pertains to Karnataka Mahrishi Valmiki ST Development Corporation Limited. This arrest is part of an ongoing probe into the misappropriation of Corporation funds totalling to Rs 89.62 Crore.
On July 10, the ED conducted search and seizure operations across 23 premises in four states, uncovering crucial evidence. ED initiated investigation on the basis of FIRs registered by the Karnataka Police and CBI after the suicide of Corporation employee Chandrashekhar.
Diverted Rs 90 Cr to 18 fake accounts
ED investigation revealed that approximately Rs 90 Crore were diverted to 18 fake accounts in Andhra Pradesh and Telangana. The diverted funds were then layered through fake and shell accounts, with cash and bullion dispersed among the accused.
B Nagendra, the former minister, also resigned following the exposure of the scam.
Furthermore, during the course of the investigation, ED uncovered that a substantial amount of funds were utilized to procure a significant quantity of liquor just prior to the general elections. Additionally, high-end vehicles, including a Lamborghini, were purchased using proceeds from the scam.
Recovered documents
During the search operations at B Nagendra's and Basanagouda Daddal's (Corporation's Chairman) premises, ED recovered incriminating documents linking them to the handling of diverted funds during recent general elections.
Additionally, associates closely connected to B Nagendra were implicated in fund diversion and cash management. Incriminating evidence related to the handling of these illicit funds was also discovered at the residence of Basanagouda Daddal.
B Nagendra has been produced before the special Court for MPs and MLAs. The Court has granted ED custody until July 18, 2024.
