Financial Crime Agency Conducts Fresh Searches Targeting Karnataka Congress Leadership

Hans India

2 days ago

The Enforcement Directorate launched a fresh round of investigative operations across Karnataka on Wednesday, targeting properties connected to prominent Congress figures including Ballari Lok Sabha Member of Parliament E Tukaram and several state legislators. The coordinated searches encompassed eight strategic locations as part of an ongoing probe into suspected financial irregularities.
The current investigation centers on allegations of large-scale fund misappropriation from the Karnataka Valmiki Scheduled Tribes Development Corporation Limited (KVSTDCL). Authorities suspect that embezzled money was subsequently channeled to finance political campaign activities during recent Lok Sabha elections, raising serious questions about electoral funding practices.
This marks the second major enforcement action in the case, following July 2024 operations when investigators searched approximately 20 locations across Karnataka, Andhra Pradesh, and Telangana. Those earlier raids focused on Congress MLA Basanagouda Daddal, who served as KVSTDCL chairman during the period under investigation.
The scandal emerged following the tragic death of corporation accounts superintendent Chandrasekharan P on May 21, 2024. His final written statement alleged unauthorized transfer of Rs 187 crore from the corporation's accounts, with Rs 88.62 crore reportedly deposited illegally into IT company accounts and a Hyderabad-based cooperative bank.
The controversy led to significant political consequences, including the suspension of two officials and the resignation of Karnataka Tribal Welfare and Sports Minister Nagendra, who was subsequently arrested by the Enforcement Directorate in connection with the alleged financial crimes.
Congress leadership has responded strongly to the latest enforcement actions, with party president Mallikarjun Kharge characterizing the raids as politically motivated attempts to destabilize the organization. Kharge questioned the timing of the operations, suggesting they represent efforts to divide party legislators and weaken Congress unity.
"Congress party MLAs are being targeted. They are trying to break our party," Kharge stated, expressing concerns about the investigation's broader political implications. He emphasized the suspicious timing, noting that authorities are revisiting election-period activities after a significant delay.
Karnataka Chief Minister Siddaramaiah adopted a measured response, acknowledging the legal process while maintaining governmental non-interference. "What can I do about the ED raids? Let them act according to the law," he commented, emphasizing that his administration would not support any illegal activities or interfere with ongoing legal proceedings.
Congress leader Randeep Surjewala escalated the political rhetoric, accusing the ruling party of using the Enforcement Directorate as an instrument of political vendetta. He highlighted what he described as a pattern of targeting leaders from scheduled castes, tribes, and other backward communities, suggesting systematic bias in enforcement actions.
The ongoing investigation continues to generate significant political heat in Karnataka, with both sides presenting contrasting narratives about the nature and motivation behind the enforcement operations.