Former Karnataka Minister B Nagendra has been taken into custody by the Enforcement Directorate (ED) as part of a money-laundering probe related to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. Nagendra, who was the Scheduled Tribes Welfare Minister, resigned on June 6 following allegations against him in connection with the scam. The ED conducted searches at multiple locations, including at Nagendra’s premises and that of ruling Congress MLA Basanagouda Daddal, who is the Chairman of the Corporation, covering about 20 locations across Karnataka, Andhra Pradesh, Telangana, and Maharashtra. The investigation is part of a case registered under the Prevention of Money Laundering Act (PMLA) after the accounts superintendent of the Corporation, Chandrasekharan P, allegedly killed himself and left behind a note claiming unauthorized transfers of funds. The note implicated several officials and the ‘Minister’ for issuing oral orders for the transfers. The State government has set up a Special Investigation Team (SIT) to probe the matter, with the CBI also launching an investigation based on a complaint by the Union Bank of India. The case has caused political uproar, with members of the BJP calling out the Congress government for a series of scams and misuse of funds intended for tribal communities. The ongoing developments are expected to lead to a stormy monsoon session in the Karnataka assembly, as the opposition plans to protest against the government’s policies.
