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ED arrests former Karnataka Minister B Nagendra in money laundering probe

08:46 AM Jul 13, 2024 | Team Udayavani |

Bengaluru: The Enforcement Directorate on Friday arrested former state Minister and Congress leader B Nagendra in connection with a money laundering probe linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, sources said.

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The sources said the legislator was taken into custody at around 10.30 pm at the agency’s office here. He was questioned for more than 13 hours. He was taken to the ED office from his residence early morning.

He is expected to be produced before a special Prevention of Money Laundering Act (PMLA) court on Saturday where the ED will seek his remand for custodial interrogation.

The agency had conducted raids in four states, including Karnataka, on Thursday in this case and has seized about Rs 50 lakh cash and some documents till now.

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Following allegations against him in connection with the scam, Nagendra, who was the Scheduled Tribes Welfare Minister, tendered his resignation on June 6.

“I’m being brought from my home… I don’t know anything,” Nagendra told reporters as he was being taken to the ED office in the morning.

The ED has carried out searches for the last two days at several places, including at the premises of Nagendra, and ruling Congress MLA Basanagouda Daddal, who is chairman of the Corporation.

The agency covered around 20 locations in Karnataka, Andhra Pradesh, Telangana and Maharashtra as part of a case registered under the PMLA, the sources said.

The illegal money transfer issue, involving the Corporation, came to the fore after its accounts superintendent Chandrasekharan P killed himself on May 26.

He left behind a note claiming an unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account; from that, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to “well-known” IT companies and a Hyderabad-based cooperative bank among others.

Chandrasekharan has named the Corporation’s now-suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar, and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that the “minister” had issued oral orders for transferring the funds.

The state government has constituted an SIT headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID), to conduct the probe.

The SIT questioned Nagendra and Daddal on Tuesday in connection with the case. Daddal appeared before the SIT on Friday too.

Mumbai-headquartered Union Bank of India had also filed a complaint with the CBI in connection with the embezzlement of money belonging to the Corporation involving its MG Road branch, following which the premier investigation agency had initiated a probe.

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