Karnataka Bhovi Corporation scam: ED attaches former officials' property worth Rs 26 crore
The Enforcement Directorate has provisionally attached assets worth Rs 26.27 crore in the Karnataka Bhovi Development Corporation (KBDC) scam case. The properties belong to former KBDC general manager B K Nagarajappa, former managing director R Leelavathy, and others.
The attachment was made as part of ongoing investigations into alleged financial irregularities within the corporation.
The ED said in a statement on Monday, 'The investigation revealed that B K Nagarajappa, the then General Manager, KBDC, and Ms R Leelvathy, the then Managing Director, KBDC, in connivance with middlemen and their associates, have misappropriated the funds from KBDC by sanctioning the loans/subsidies/financial assistance to the bank accounts of more than 750 fake beneficiaries, which were fraudulently opened by them.
'Later, the amounts so sanctioned from KBDC were diverted to the bank accounts of various entities viz Adithya Enterprises, Somanatheswara Enterprises, New Dreams Enterprises, Harntiha Creations, Annika Enterprises–controlled by B K Nagarajappa and others–which were used in the purchase of properties, making payments to middlemen and further diverted to bank accounts of individuals and various other entities.'
Arrested by the ED on April 5 and April 12, respectively, Nagarajappa and Leelavathy are in judicial custody in the scam case.
The ED alleges that the money misappropriated from the Karnataka Bhovi Development Corporation was mainly used by the accused to maintain a luxurious lifestyle and to acquire immovable and movable properties in their name and in the names of their family members.
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