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Indian Express
27-05-2025
- Business
- Indian Express
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.
India Gazette
26-05-2025
- Business
- India Gazette
ED attaches assets worth Rs 26.27 crore in Karnataka Bhovi Development Corporation scam
Bengaluru (Karnataka) [India], May 26 (ANI): The Directorate of Enforcement (ED), Bengaluru Zonal Office has provisionally attached immovable properties worth approximately Rs 26.27 crore (with a current market value of Rs 40 crore) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said in a statement on Monday. According to the ED statement, the assets belong to B K Nagarajappa, R Leelavathy, and other accused in a case related to the misappropriation of funds from the Karnataka Bhovi Development Corporation (KBDC). 'ED, Bengaluru Zonal Office has provisionally attached various immovable properties worth Rs. 26.27 Crore (approx.), (with current market value of Rs. 40 Crore) belonging to B K Nagarajappa, Ms. R Leelavathy and other accused, under the provisions of PMLA, 2002, in a case related to misappropriation of funds from Karnataka Bhovi Development Corporation (KBDC),' the ED said in a post on X. ED investigation revealed that B K Nagarajappa, the then General Manager, KBDC and 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, it said. 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 was used in the purchase of properties, making payments to middlemen, and further diverted to bank accounts of individuals and various other entities, the agency said. The money misappropriated from KBDC was mainly used to maintain their luxurious lifestyle and to acquire immovable and movable properties in their name, in the name of their family members. Earlier, the then General Manager of KBDC B K Nagarajappa and the then Managing Director of KBDC R Leelavathy were arrested u/s 19 of PMLA 2002 by the ED on April 05, 2025 and April 12, 2025 respectively and are currently under judicial custody, the ED said. Further investigation is under progress, it added. (ANI)
Time of India
26-05-2025
- Time of India
Karnataka Bhovi Development Corporation scam: Enforcement Directorate attaches properties worth Rs 26 crore
Bengaluru: The Enforcement Directorate (ED), probing the alleged multi-crore scam at Karnataka Bhovi Development Corporation (KBDC), has attached immovable properties worth Rs 26 crore seized from corporation's former general manager BK Nagarajappa and former managing director R Leelavathy. Both were arrested earlier by ED under the Prevention of Money Laundering Act. At present, both are in judicial custody at Bengaluru Central Prison. "Investigations revealed thatNagarajappa and Leelavathy, in connivance with middlemen and their associates, misappropriated funds from KBDC by sanctioning loans, subsidies, and financial assistance to the bank accounts of more than 750 fake beneficiaries, which were fraudulently opened by them. Later, the amounts 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 Nagarajappa and others. .. The money misappropriated from KBDC was mainly used to maintain their luxurious lifestyle and to acquire immovable and movable properties in their name and in the name of their family members," ED stated in a release. A special investigation team of CID is also probing the same case.
Time of India
12-05-2025
- Time of India
CID arrests former Karnataka Bhovi Development Corporation GM
Bengaluru: CID on Monday arrested BK Nagarajappa , a former general manager of the Karnataka Bhovi Development Corporation , in connection with an alleged fund transfer scam in the financial institution. He was produced before a local court, which remanded him in police custody for 10 Enforcement Directorate (ED) had arrested Nagarajappa in April and interrogated him during a 14-day police alleged scam, initially discovered in Nov 2023, is being probed by CID. Preliminary investigations have revealed that approximately Rs 97 crore were misappropriated by transferring funds to over 500 bank accounts created under fictitious beneficiary has already made several arrests in connection with the case, including the corporation's former managing director R Leelavati and her sister R Managala, who is employed at the Indian Institute of Science.
