ED Raids Unveil Major Financial Scam Linked to Karnataka Politicians

The Enforcement Directorate conducted searches at several locations tied to former Karnataka Minister B Nagendra and Congress MLA Basanagouda Daddal in connection with an illegal money transfer case involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. The alleged scam surfaced following the suicide of the Corporation's Accounts Superintendent.

The Enforcement Directorate (ED) on Wednesday carried out searches at multiple locations across Karnataka, allegedly linked to former state Minister B Nagendra and Congress MLA Basanagouda Daddal. The raids are part of an investigation into the illegal transfer of Rs 187 crore from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation's accounts.

Sources revealed that the unauthorized transfer includes Rs 88.62 crore that was credited to various accounts of some IT companies and a Hyderabad-based cooperative bank. Congress MLA Basanagouda Daddal, who chairs the Corporation, is also being questioned. B Nagendra resigned from his post as the Scheduled Tribes Welfare Minister on June 6 following the allegations.

The case came to light after Accounts Superintendent Chandrasekharan P took his own life on May 26, leaving a suicide note detailing the illegal money transfer. Following these events, a Special Investigation Team (SIT) was formed, and so far, 11 arrests have been made. The Central Bureau of Investigation (CBI) has also been involved after a complaint was lodged by the Union Bank of India.

(With inputs from agencies.)