Bengaluru
In connection with the alleged misuse of funds from the Maharshi Valmiki Scheduled Tribes Development Corporation, the Enforcement Directorate (ED) has attached immovable properties worth ₹8.07 crore belonging to former minister B. Nagendra.
Acting under provisions of the Prevention of Money Laundering Act (PMLA), the ED attached four immovable assets, including residential and commercial properties. The agency has classified these assets as “proceeds of crime” generated through alleged financial irregularities in the Valmiki Board.
The ED stated that the remaining proceeds of crime could not be traced so far, suspecting that Nagendra may have diverted or concealed the funds through other means.
According to investigators, crores of rupees were allegedly transferred illegally from Valmiki Development Corporation accounts to fake bank accounts and later routed through shell companies to different destinations. The case came to light after the corporation’s superintendent, Chandrashekaran, died by suicide at his Shivamogga residence. In his death note, he reportedly named three individuals and referred to a multi-crore scam.
Subsequently, the corporation’s general manager Rajasekhar lodged a complaint alleging that ₹94 crore was fraudulently transferred without any alerts or messages, accusing bank staff of creating forged documents. Based on the complaint, an FIR was registered against six bank officials at Bengaluru’s High Grounds police station.
Former minister Nagendra and Congress MLA Basanagouda Daddal, who served as corporation chairman, were accused of using the funds for Lok Sabha election expenses. Although an SIT earlier gave them a clean chit, the Karnataka High Court later scrapped the SIT probe and ordered a CBI investigation.