Bengaluru (Karnataka): In a significant development concerning alleged financial irregularities at the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDC), Enforcement Directorate (ED) officials have taken Congress MLA and former Karnataka minister B Nagendra into custody. The action follows extensive raids conducted over two days across various locations including Bengaluru, Raichur, and Ballari.
Nagendra, who has denied all allegations against him faces questioning at the ED's Bengaluru office as part of their ongoing inquiry into the financial discrepancies at KMVSTDC.
The ED's investigation stems from allegations surrounding purported multi-crore embezzlement within the corporation, initially brought to light by the tragic suicide of Chandrashekaran (46), an accountant associated with the corporation on May 26.
In his suicide note, Chandrashekaran accused the corporation of illicit money transfers and misappropriation of grant funds, also implicating MLA B Nagedra, who was the Minister for Scheduled Castes Welfare at the time. The incident prompted widespread demands for Nagendra's resignation from his ministerial position, which he later tendered amid ongoing scrutiny.
Following the raids and subsequent developments, including the formation of a Special Investigation Team (SIT) by the Karnataka government and demands for a CBI probe by opposition figures, the ED's intervention marks a significant escalation in the case.
Allegations have also surfaced implicating Karnataka Chief Minister Siddaramaiah in the scandal, which has intensified political tensions in the state.
Responding to these developments, Karnataka Deputy Chief Minister has questioned the necessity of ED's involvement, citing prior investigations conducted by the SIT and the ongoing CBI probe initiated following the controversy. He emphasised procedural protocols governing such investigations and criticised the timing and scope of the ED's actions based on complaints from individuals not directly involved in the government's investigative processes.
