Former Congress minister B Nagendra arrested in money laundering case

The ED had also questioned the personal assistants of the two Congress leaders on account of their alleged knowledge of the diversion of the Rs 94.73 crore. The misappropriation came to the fore after a corporation official P Chandrashekaran allegedly involved in auditing and coordinating with Union Bank of India died by suicide on May 26 this year detailing the fraud and the people involved in a six-page note he left behind. Following the scam, Minister of Tribal Welfare Nagendra resigned from his post.

The Karnataka Police had constituted a CID SIT to probe the scam. So far, 11 people have been arrested and stolen funds worth Rs 40 crore which were diverted to 18 bank accounts of fake companies have been seized.

According to the police complaint filed by the ST Corporation officials, some of the corporation officials allegedly forged signatures and illegally transferred Rs 94,73,08,500 to various accounts. The FIR also alleges that the corporation did not receive any intimation of these transactions.

In a separate complaint to the CBI, the Union Bank of India’s Deputy General Manager and regional head of Bengaluru East had stated that Rs 89.63 crore public money was defrauded and Rs 5 crore has been recovered.The investigation revealed that of the 18 accounts to which the money was transferred, nine were opened at RBL bank in Hyderabad on March 31. A case has also been registered by CBI based on the complaint filed by UBI’s deputy general manager.

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