Major Embezzlement Scandal: Former Karnataka Minister Arrested by ED

BENGALURU: In a dramatic turn of events, former Congress minister B Nagendra has been arrested in connection with a major embezzlement scandal involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. The Enforcement Directorate (ED) revealed in its remand application that funds amounting to Rs 94 crore were illicitly diverted under Nagendra’s orchestration.

The Scam Unveiled

According to the ED, Nagendra directed the transfer of the corporation’s accounts from the Vasant Nagar branch of Union Bank of India to its MG Road branch. He allegedly held secret meetings with officials and other individuals at a hotel to exert pressure on them to divert the funds illegally. The scam, which unfolded between February and May, involved transferring large sums of money from the corporation’s bank accounts to multiple mule accounts opened using stolen identities.

Arrest and Custody

Nagendra was apprehended by the ED late Friday night following a two-day search operation at various locations linked to him. He was produced before a special judge for elected representatives on Saturday and was remanded in six-day custody.

The arrest marks a significant development in the investigation, which intensified after Nagendra’s resignation as the tribal welfare minister in June. His resignation came amid allegations linking one of his aides to the tribal welfare fund scam.

Ongoing Investigations

Officials are currently searching for Nagendra’s close associate, Congress MLA Basanagouda Daddal from Raichur Rural. Daddal was questioned by a Special Investigation Team (SIT) on Friday. Additionally, officials have interrogated Nagendra’s personal assistant, Pampanna, who allegedly received Rs 50 lakh in late April and Rs 5 lakh in March.

The ED’s investigation is focused on tracing the flow of funds and identifying all individuals involved in the scam. The illicit transfer of funds has raised serious concerns about the misuse of public money intended for the welfare of scheduled tribes.

Political Fallout

The arrest of B Nagendra has significant political implications, potentially impacting the Congress party’s image in Karnataka. The scam not only highlights the issue of corruption within the government but also raises questions about the effectiveness of oversight mechanisms in preventing such large-scale embezzlement.

Public Reaction

The public response to the scandal has been one of outrage and disappointment. Many citizens are demanding stringent action against those involved and calling for reforms to ensure greater transparency and accountability in the management of public funds.

As the investigation progresses, more details are expected to emerge, shedding light on the extent of the embezzlement and the network of individuals involved. The case underscores the importance of vigilance and integrity in public office and the need for robust systems to prevent corruption.

For the latest updates on this developing story, stay tuned to Sarhind Times.