Explosive Chargesheet Reveals Rs 187 Crore Valmiki Scam in Karnataka

The Enforcement Directorate has uncovered a sophisticated money-laundering scheme involving over Rs 187 crores misappropriated from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation accounts. Former Minister Nagendra allegedly used a portion of these funds for election expenses and personal use, with the scheme involving fake accounts and shell companies.

The Enforcement Directorate (ED) has laid bare an intricate money-laundering operation through its chargesheet, revealing misappropriation of Rs 187.33 crore by former Karnataka Minister Nagendra and his close aides from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL).

According to the chargesheet, a substantial Rs 15 crore was redirected to fund 2024 Lok Sabha election campaigns under Nagendra's instructions, while significant portions were spent on personal expenses. The probe tracked money trails, exposing the conversion of funds into cash, gold, and assets through fake accounts and shell companies.

The investigation highlighted that, on Nagendra's orders, Rs 187 crore from KMVSTDCL holdings was funneled into a single account at Union Bank's MG Road branch. Subsequently, Rs 89.63 crore was siphoned off into fictitious accounts, specifically benefitting from fraudulent activities linked to First Finance Credit Cooperative Society Limited at RBL Bank's Banjara Hills branch.

(With inputs from agencies.)