The Enforcement Directorate (ED) on Wednesday, June 11, conducted raids at multiple locations linked to Congress leaders in Karnataka’s Ballari district, including sitting MP E Tukaram and three MLAs, as part of its ongoing investigation into the alleged misappropriation of Scheduled Tribe welfare funds from the Karnataka Maharshi Valmiki ST Development Corporation.
The searches, which began early in the morning, were carried out under provisions of the Prevention of Money Laundering Act (PMLA). In addition to Tukaram, who represents Ballari in the Lok Sabha, premises linked to Ballari City MLA Nara Bharat Reddy, Kampli MLA JN Ganesh, and Govardhan Reddy, a close aide of Ballari Rural MLA B Nagendra, were also raided. ED officials are said to be examining documents and digital evidence recovered during the operations.
The ED’s probe stems from FIRs registered by the Karnataka Police and the Central Bureau of Investigation (CBI), which allege that crores of rupees earmarked for tribal welfare were diverted from the Valmiki Corporation’s accounts into fake or shell accounts. The funds were reportedly laundered through a network of entities and allegedly used during the 2024 Lok Sabha elections in the Ballari constituency.
The alleged scam came to light after the death of Chandrasekharan P, the accounts superintendent of the corporation, who died by suicide on May 21, 2023. His suicide note detailed the illegal transfer of funds. Following this, former tribal welfare minister B Nagendra and five others were arrested but later released on bail. Nagendra resigned from his ministerial post amid the allegations.
According to the ED’s chargesheet filed last year, Nagendra and his aides allegedly handled large sums of siphoned money. His personal assistant, Vijay Kumar Gowda, is said to have distributed the cash under Nagendra’s direction. The agency alleges that Rs 200 was handed out to over 7.4 lakh voters and Rs 10,000 to party workers at each polling booth in Ballari, totalling more than Rs 14 crore and Rs 72 lakh respectively. The cash, the ED said, was aimed at mobilising support for Congress candidate E Tukaram during the 2024 elections.
The ED also stated that between March and May 2023, over Rs 187 crore meant for tribal welfare was fraudulently withdrawn from the Valmiki Corporation's accounts.
Karnataka Chief Minister Siddaramaiah said that the state government would not obstruct the investigation. “What should I do? The ED has conducted raids. Let them do whatever they want in accordance with the law. We will not support any violation of law,” he said.
The ED is yet to release an official statement regarding the raids.