ED Arrests Ex-Karnataka Minister B Nagendra in Corruption Probe

The Enforcement Directorate (ED) arrested former state Minister B Nagendra on Friday in a money laundering investigation tied to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, according to sources. The Congress MLA was taken from his residence to the ED office for questioning before his arrest.

Money Laundering Allegations

Nagendra, who previously served as the Scheduled Tribes Welfare Minister, resigned on June 6 following allegations related to the scam. "I'm being brought from my home... I don't know anything," Nagendra told reporters while being escorted to the ED office. The ED conducted searches over two days at multiple locations, including Nagendra's premises and those of ruling Congress MLA Basanagouda Daddal, Chairman of the Corporation.

Scope of Investigation

The agency covered around 20 locations across Karnataka, Andhra Pradesh, Telangana, and Maharashtra as part of a case registered under the Prevention of Money Laundering Act (PMLA), sources said. The illegal money transfer issue surfaced after Chandrasekharan P, the Corporation's accounts superintendent, committed suicide on May 26. He left a note alleging unauthorised transfer of Rs 187 crore from the Corporation's bank account.

Details from Suicide Note

Chandrasekharan's note claimed that Rs 88.62 crore was illegally moved to various accounts allegedly belonging to well-known IT companies and a Hyderabad-based cooperative bank, among others. He named the Corporation's now-suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal in the note. The note also mentioned that the Minister had issued oral orders for transferring the funds.

SIT Investigation

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), to conduct the probe. The SIT questioned Nagendra and Daddal on Tuesday regarding the case. Daddal appeared before the SIT again on Friday.

Union Bank Complaint

Mumbai-headquartered Union Bank of India also filed a complaint with the Central Bureau of Investigation (CBI) concerning embezzlement involving its MG Road branch. This prompted the premier investigation agency to initiate a probe into the matter.

The investigation continues as authorities seek to uncover further details about the alleged financial misconduct within the Corporation.