Enforcement Directorate Cracks Down on Valmiki Scam in Karnataka

The Enforcement Directorate has conducted raids on Congress' Bellary MP E Tukaram and three MLAs in Karnataka. This is part of a money laundering investigation linked to the Valmiki scam where funds intended for ST communities were allegedly diverted and laundered.

The Enforcement Directorate (ED) intensified its investigation into the alleged Valmiki scam by conducting raids on Wednesday against Congress' Bellary MP E Tukaram and three other MLAs in Karnataka. The move is part of a broader probe into suspected money laundering activities tied to the scam, according to official sources.

These searches are being carried out under the Prevention of Money Laundering Act (PMLA), focusing on properties linked to Tukaram and the three MLAs. The money laundering case originally stems from FIRs filed by Karnataka Police and the CBI, alleging that substantial funds were illicitly funneled from the Karnataka Maharshi Valmiki ST Development Corporation's accounts and rerouted to fake accounts before being laundered through shell entities.

Established in 2006, the corporation's mission was to support socio-economic growth among Scheduled Tribe communities in Karnataka via various welfare programs. The ED claims that embezzled funds were later utilized in the Bellary constituency's 2024 Lok Sabha elections, further escalating the political implications of the investigation.

(With inputs from agencies.)