ED Arrests B Nagendra in Connection with Karnataka ST Development Corporation Scam

Former state Minister and Congress leader B Nagendra was arrested by the Enforcement Directorate for alleged involvement in a money laundering case related to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. The arrest followed raids in four states and the seizure of cash and documents.

The Enforcement Directorate (ED) on Friday arrested former state Minister and Congress leader B Nagendra in connection with a money laundering probe linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, sources said.

The sources reported that the legislator was taken into custody around 10.30 pm at the agency's office. Nagendra was questioned for over 13 hours after being taken from his residence early in the morning.

He is expected to appear before a special Prevention of Money Laundering Act (PMLA) court on Saturday, where the ED will seek his remand for custodial interrogation.

The agency conducted raids in Karnataka, Andhra Pradesh, Telangana, and Maharashtra on Thursday, seizing Rs 50 lakh cash and several documents. Nagendra, who resigned as Scheduled Tribes Welfare Minister on June 6 amid the allegations, was one of the targets.

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

The ED had searched multiple locations, including the residences of Nagendra and ruling Congress MLA Basanagouda Daddal, who chairs the Corporation. The money laundering case surfaced after the Corporation's accounts superintendent Chandrasekharan P committed suicide on May 26, leaving a note about unauthorized transfers involving Rs 187 crore.

Chandrasekharan named the now-suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal, alleging that the ''minister'' had ordered the funds' transfer. The state government has formed an SIT, led by ADGP Manish Kharbikar, to investigate the case.

The Mumbai-headquartered Union Bank of India also lodged a complaint with the CBI regarding the embezzlement of funds from its MG Road branch, prompting a probe by the premier investigation agency.