Bengaluru, Dec 19 The Enforcement Directorate's Bengaluru Zonal Office, on Friday, provisionally attached four immovable properties, including residential and commercial land and building worth Rs 8.07 crore belonging to B. Nagendra, former Karnataka Minister and Congress MLA, ED officials said.
According to official statement by the ED, the attachment has been done in a case related to misappropriation and diversion of funds of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.
The attachment further has been done under the provisions of Prevention of Money Laundering Act (PMLA).
All-out efforts were taken to trace the proceeds of crime (POC) generated by Minister Nagendra.
However, the remaining POC could not be traced and it appears that it has been either exhausted or concealed by Minister Nagendra.
Therefore, the ED is constrained to attach the equivalent value of POC in the form of such properties which otherwise may frustrate the further proceedings under PMLA, 2002, the ED added.
Four immovable properties worth Rs 8.07 crore, belonging to Minister Nagendra were attached as value thereof as equivalent value of the POC, the ED said.
The central probe agency has initiated the investigation on the basis of various FIRs registered by the Karnataka Police and the Central Bureau of Investigation in Bengaluru in connection with offences related to misuse/diversion of funds from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.
Earlier, search operations were conducted under the provisions of PMLA, 2002, at various locations across Karnataka and other states.
As many as six persons, including Minister Nagendra were arrested.
Thereafter, a charge sheet was filed before the Bengaluru Principal City Civil and Sessions Judge on September 9, 2024, against 25 accused persons/entities including Minister Nagendra.
The movable and immovable properties, of other accused, totalling to Rs. 4.94 crore were provisionally attached earlier.
Further investigation is under progress.
Minister Nagendra was arrested by the ED in July 2024 in connection with the Valmiki corporation money laundering case tied to alleged misappropriation of funds.
the Minister faced detention under anti-money laundering provisions and was later released on bail.
The Valmiki Tribal scam involves alleged illegal transfer and diversion of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited -- an agency created for Scheduled Tribe welfare -- to fake accounts and shell entities.
The scam came to light in mid-2024 after a corporation official's suicide note claimed that crores of rupees were siphoned off.
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