Valmiki corporation scam: ED searches premises of ex-Minister Nagendra, corporation chairman Basanagouda Daddal

The ED raids come a day after SIT questioned the two MLAs in connection with the scam

Updated - July 10, 2024 09:41 pm IST

Published - July 10, 2024 11:06 am IST - Bengaluru/Kalaburagi

 The Ballari residence of former Minister B. Nagendra which was searched by the Enforcement Directorate on Wednesday.

The Ballari residence of former Minister B. Nagendra which was searched by the Enforcement Directorate on Wednesday. | Photo Credit: Special Arrangement

A view of the apartment complex in Bengaluru where the ED conducted searches in the flat of former Minister B. Nagendra on Wednesday.

A view of the apartment complex in Bengaluru where the ED conducted searches in the flat of former Minister B. Nagendra on Wednesday. | Photo Credit: SUDHAKARA JAIN

The Directorate of Enforcement (ED) simultaneously searched over 20 premises linked to accused and suspects in the alleged scam at the State-run Maharshi Valmiki Scheduled Tribes Development Corporation, where funds up to ₹88 crore were allegedly embezzled.

Premises linked to two ruling Congress MLAs — Ballari Rural MLA B. Nagendra, who resigned as Minister for Scheduled Tribes Welfare on June 6 after the scam broke out, and Raichur Rural MLA Basanagouda Daddal, who is chairman of the corporation.

When last checked before going to print, the searches were continuing. The ED has detained one Harish, PA to Mr. Nagendra. He was taken to the ED office in Bengaluru and is being questioned, sources said.

The raids came a day after Mr. Nagendra and Mr. Daddal were questioned by SIT on July 9. Till date, the SIT has arrested 11 persons and seized ₹14.5 crore. The duo was supposed to appear before SIT on Wednesday and after a notice was issued, they will have to appear before SIT on Thursday.

Others raided by the ED include key accused J. J. Padmanabh, managing director of the corporation, Parashuram, an accountant at the corporation, and three employees of the Union Bank of India, M. G. Road branch in Bengaluru where the alleged money laundering happened. The ED had taken security cover from the Central Reserve Police Force for the raids and not from the Karnataka police. The ED officials knocked on the doors of those raided at 3.30 a.m., the sources said.

The ED is searching three residences of Mr. Nagendra — two in Bengaluru and one in Ballari city, three premises linked to Mr. Daddal — his residences in Raichur and at Yelahanka, Bengaluru, his room in the Legislators’ Home in Bengaluru, the corporation’s head office at Vasanth Nagar, Bengaluru, apart from residences of the other accused. Mr. Daddal’s former PA Pampanna was also raided later in the day.

ED searched the residence of Congress MLA Basanagouda Daddal in Raichur in connection with the alleged scam in the State-run Maharshi Valmiki Scheduled Tribes Development Corporation where funds up to ₹88 crore were allegedly embezzled, on July 10, 2024.

ED searched the residence of Congress MLA Basanagouda Daddal in Raichur in connection with the alleged scam in the State-run Maharshi Valmiki Scheduled Tribes Development Corporation where funds up to ₹88 crore were allegedly embezzled, on July 10, 2024. | Photo Credit: Santosh Sagar

Mr. Nagendra and Mr. Daddal were present at their residences during the raids, and were being questioned by ED officials even late into Wednesday night, sources said.

The scam came to light when the corporation’s accounts superintendent P. Chandrashekharan ended his life on May 26. In a note, he alleged illegal transfer of money from the corporation to various accounts. The Mumbai-headquartered Union Bank of India, in its complaint to the Central Bureau of Investigation (CBI) had alleged embezzlement of funds amounting to ₹88 crore.

ED is the third agency probing the alleged scam apart from a Special Investigation Team (SIT) formed by the State Government and the CBI. 

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.