Former Karnataka Minister B Nagendra was taken into custody by the Enforcement Directorate (ED) on Friday, July 12 in connection with the alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, according to reports.
The Congress MLA was taken from his residence to the ED office for questioning, following allegations related to the scam. Nagendra, who resigned from his position as Scheduled Tribes Welfare Minister on June 6, expressed uncertainty to reporters as he was taken into custody, stating, “I’m being brought from my home…I don’t know anything.”
Over the past two days, the ED conducted searches at multiple locations, including premises associated with Nagendra and Congress MLA Basanagouda Daddal, who chairs the Corporation. At least 20 locations across Karnataka, Andhra Pradesh, Telangana, and Maharashtra were raided in connection with the scam.
The investigation into illegal money transfers involving the Corporation gained prominence following the suicide of its accounts superintendent, Chandrasekharan P, on May 26. In a note left behind, Chandrasekharan alleged the unauthorised transfer of Rs 187 crore from the Corporation’s bank account.
Chandrasekharan named the Corporation’s suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal in the note, also mentioning oral directives from a "Minister’s staff" for the fund transfers.
In response, the state government established a Special Investigation Team (SIT) led by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID) to oversee the inquiry. Earlier this week, the SIT had questioned Nagendra and Daddal regarding the case.
Union Bank of India’s MG Road branch filed a complaint with the Central Bureau of Investigation (CBI) regarding the embezzlement of Corporation funds, prompting the investigative agency to launch its own probe.