17 July 2024

Bengaluru, July 17, 2024 (ANI): Former Karnataka Minister B Nagendra has been arrested by the Directorate of Enforcement (ED), Bengaluru Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002. The arrest, made on July 12, 2024, is part of an ongoing investigation into the misappropriation of funds totalling Rs. 89.62 crore from the Karnataka Mahrishi Valmiki ST Development Corporation Limited.

Earlier this month, ED conducted extensive search and seizure operations across 23 premises in four states, uncovering crucial evidence related to the case. The probe was initiated following FIRs filed by Karnataka Police and the CBI after a tragic incident involving a Corporation employee in May 2024.

Investigations revealed that around Rs. 90 crores were diverted to 18 fake accounts in Andhra Pradesh and Telangana, and subsequently funnelled through fake and shell accounts. The diverted funds were allegedly used for purchasing large quantities of liquor before elections and for acquiring luxury vehicles, including a Lamborghini.

During the search operations at B Nagendra's and Basanagouda Daddal's (Chairman of the Corporation) premises, ED recovered incriminating documents linking them to the handling of diverted funds during recent general elections. Several associates closely connected to B Nagendra were also implicated in fund diversion and cash management.

B Nagendra has been produced before the Hon’ble Special Court for MPs and MLAs, which has granted ED custody until July 18, 2024. The investigation continues as authorities delve deeper into the alleged financial irregularities.