Karnataka: ED says funds of Valmiki corporation was diverted to buy ‘significant’ quantity of liquor

On Thursday, the minister will be produced before the court. On Wednesday, the ED officials also questioned Manjula, wife of Nagendra.

The ED, which had registered the case under the provisions of Prevention of Money Laundering Act (PMLA), 2002, has already conducted searches in 23 premises in four states.

The ED says that the investigation revealed that approximately Rs 90 crore was diverted to 18 fake accounts in Andhra Pradesh and Telangana. The diverted funds were then layered through fake and shell accounts, with cash and bullion dispersed among the accused.

Interestingly, a day before the ED claim, Karnataka BJP leaders had said that the diverted money was used to fund the Lok Sabha elections.

During the course of the investigation, the ED reportedly uncovered that a substantial amount of funds were utilised to procure a significant quantity of liquor just prior to the general elections. Additionally, high-end vehicles, including a Lamborghini, were purchased using the proceeds from the scam.

During search operations at premises owned by B Nagendra and Basanagouda Daddal (Corporation’s Chairman), the ED recovered incriminating documents linking them to the handling of the diverted funds during the recent general elections.

Additionally, associates closely connected to B Nagendra have been implicated in fund diversion and cash management. Incriminating evidence related to the handling of these illicit funds was also discovered at the residence of Daddal, the ED said.