ED Seizes Assets in Karnataka's Valmiki Scam

The Enforcement Directorate has attached assets worth approximately Rs 8 crore belonging to former Karnataka minister B Nagendra in connection with the Valmiki scam. These assets comprise residential and commercial properties, confiscated under the Prevention of Money Laundering Act. The case originates from alleged fund diversion involving the KMVSTDC.

The Enforcement Directorate (ED) has attached assets worth around Rs 8 crore belonging to former Karnataka minister and Congress leader B Nagendra. The ED's action is linked to the alleged Valmiki scam, involving money laundering via shell entities. The assets seized include four residential and commercial properties along with a building, all attached under the Prevention of Money Laundering Act (PMLA).

According to the ED's statement, these assets represent 'proceeds of crime,' referring to illicit funds under the PMLA. Despite investigations, a portion of the funds remains untraced, suspected to be either exhausted or concealed by Nagendra. Consequently, the ED has attached properties of equivalent value to prevent evasion of further legal procedures under the PMLA.

The money laundering case originates from an FIR filed by the Karnataka Police and the CBI, alleging diversion of significant funds from the Karnataka Maharshi Valmiki ST Development Corporation (KMVSTDC) to fake accounts, subsequently laundered through shell companies. Nagendra, a former tribal affairs minister, was previously arrested in connection with the case and later released on bail.

(With inputs from agencies.)