Former Karnataka Minister B Nagendra Taken Into Custody by ED in Money-Laundering Probe

Former Minister B Nagendra was taken into custody by the Enforcement Directorate on Friday in connection with a money-laundering investigation related to alleged irregularities at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, according to official sources.

The Congress MLA was reportedly transported from his residence to the ED office here for questioning, according to sources. In response to allegations linked to the scam, Nagendra, who previously served as 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. The ED has carried out searches for the last two days at several places, including at the premises of former Karnataka Minister Nagendra and ruling Congress MLA Basanagouda Daddal, who is Chairman of the Corporation.

According to sources, the agency conducted searches at approximately 20 locations across Karnataka, Andhra Pradesh, Telangana, and Maharashtra as part of a case registered under the Prevention of Money Laundering Act (PMLA).

The issue of illegal money transfers involving the Corporation gained prominence following the tragic death of its accounts superintendent, Chandrasekharan P, who took his own life on May 26.

He left behind a note claiming 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.