ED Detains Ex-Karnataka Minister B Nagendra in Money Laundering Investigation

The Enforcement Directorate (ED) arrested former state Minister and Congress leader B Nagendra on Friday. This arrest is linked to a money laundering investigation involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, according to sources. The legislator was detained around 10:30 pm at the agency's office after being questioned for over 13 hours.

He was taken from his residence early in the morning to the ED office. "I'm being brought from my home... I don't know anything," Nagendra told reporters as he was escorted to the office. He is expected to be presented before a special Prevention of Money Laundering Act (PMLA) court on Saturday, where the ED will seek his remand for further interrogation.

Raids and Seizures

The ED conducted raids across four states, including Karnataka, on Thursday. These operations led to the seizure of approximately Rs 50 lakh in cash and several documents. The agency has been searching various locations for the past two days, including premises linked to Nagendra and ruling Congress MLA Basanagouda Daddal, who chairs the Corporation.

The illegal money transfer issue came to light after Chandrasekharan P, the Corporation's accounts superintendent, committed suicide on May 26. He left a note alleging an unauthorised transfer of Rs 187 crore from the Corporation's bank account. Of this amount, Rs 88.62 crore was allegedly moved to accounts associated with well-known IT companies and a Hyderabad-based cooperative bank.

Investigation Details

Chandrasekharan's note named several individuals, including the Corporation's now-suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal. The note also claimed that Nagendra had issued oral orders for transferring the funds.

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 investigate the case. The SIT questioned both Nagendra and Daddal on Tuesday regarding their involvement in the matter.

Further Developments

Daddal appeared before the SIT again on Friday. The Mumbai-headquartered Union Bank of India also filed a complaint with the Central Bureau of Investigation (CBI) concerning the embezzlement involving its MG Road branch. Consequently, the CBI has initiated its own probe into the matter.

Nagendra resigned from his position as Scheduled Tribes Welfare Minister on June 6 following allegations related to this scam. The ED's investigation continues as they aim to uncover more details about this significant financial irregularity.

The investigation is ongoing, with authorities working diligently to trace all unauthorised transactions and hold those responsible accountable. The case highlights serious concerns about financial management within government-linked corporations.