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Hans India
a day ago
- Politics
- Hans India
Financial Crime Agency Conducts Fresh Searches Targeting Karnataka Congress Leadership
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.
Mint
2 days ago
- Politics
- Mint
Karnataka: ED raids 3 Congress MLAs, MP in Valmiki scam case; Siddaramaiah remarks, ‘What should I do?'
The Enforcement Directorate (ED) on Wednesday conducted raids at multiple locations linked to Congress Bellary MP E Tukaram and three Congress MLAs as part of a money laundering investigation connected to the alleged Valmiki scam, according to PTI report citing people who are familiar with the developments. The ED searches were carried out at five sites in Bellary and three premises in Bengaluru under the provisions of the Prevention of Money Laundering Act (PMLA). These included residences belonging to Tukaram and MLAs Nara Bharath Reddy (Bellary City), J N Ganesh (Kampli), and N T Srinivas (Kudligi). The raids aim to collect evidence regarding allegations that funds siphoned from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC) accounts were diverted and subsequently used to finance election expenses. Specifically, the misappropriated money is alleged to have been distributed as cash to voters and Congress workers during the 2024 Lok Sabha elections in the Ballari constituency. Karnataka Chief Minister Siddaramaiah on Wednesday said his government will not support any violation of the law, nor will come in the way of implementation of law. "What should I do? The ED has conducted raids. Let them do whatever they want in accordance with the law. We will not support any violation of law. We will not come in the way of the implementation of the law. We won't obstruct it," Karnataka CM and Congress leader Siddaramaiah said in response to a question from reporters. The Karnataka Valmiki case, also known as the Valmiki Corporation scam, involves the alleged misappropriation and money laundering of crores of rupees from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC). This corporation, established in 2006, aims at the socio-economic development of Scheduled Tribe communities in Karnataka by running welfare schemes for them. Funds worth approximately ₹ 89 crore were allegedly diverted from the KMVSTDC accounts into fake accounts and laundered through shell entities. About ₹ 21 crore of these funds were reportedly used to finance the 2024 Lok Sabha elections in the Bellary constituency. The irregularities surfaced after the accounts superintendent of the Valmiki Corporation, Chandrasekharan P, died by suicide in May 2024. He left behind a suicide note alleging pressure to facilitate unauthorised fund transfers exceeding ₹ 80 crore. The Karnataka Police, Central Bureau of Investigation (CBI), and Enforcement Directorate (ED) are investigating the case under the Prevention of Money Laundering Act (PMLA). FIRs were registered based on the allegations of fund diversion and laundering. Several Congress leaders, including Bellary MP E Tukaram and three Karnataka MLAs (NT Srinivas, NB Reddy, and JN Ganesh), have been raided by the ED. Former state minister B Nagendra has been named as a mastermind behind the scam and was arrested, though he was later granted bail due to lack of direct evidence of personal use of the funds. BJP leader CN Ravikumar exposed the scam in 2024, accusing Congress leaders of withdrawing and misusing the KMVSTDC funds for election purposes. The ED alleges that a portion of the siphoned money was spent on the 2024 Lok Sabha elections in Bellary.
Hindustan Times
2 days ago
- Politics
- Hindustan Times
ED raids Cong Bellary MP, 3 MLAs in Karnataka Valmiki case
The Enforcement Directorate on Wednesday conducted searches against Congress Bellary MP E Tukaram and three MLAs of the party as part of a money laundering investigation into the alleged Valmiki scam-linked money laundering case, official sources said. They said five premises in Bellary and three in Bengaluru city are being searched under the provisions of the Prevention of Money Laundering Act (PMLA). These include houses belonging to Tukaram and MLAs Nara Bharath Reddy (Bellary city), J N Ganesh (Kampli) and N T Srinivas (Kudligi). The sources said the searches are being conducted in order to gather evidence on the allegation that funds siphoned off from the accounts of the Karnataka Maharshi Valmiki ST Development Corporation (KMVSTDC) were used for election expenses -- to distribute cash to voters and Congress workers of the Bellary seat during the 2024 Lok Sabha elections. Also Read | ED searches on Cong MP, MLAs 'conspiracy' to divide party in Karnataka: Kharge The money laundering case of 2024 stems from FIRs registered by Karnataka Police and Central Bureau of Investigation (CBI) which alleged that funds worth crores of rupees were diverted from the KMVSTDC and sent to "fake accounts" before being laundered through shell entities. The corporation was established in 2006 with a primary focus on the socio-economic development of the Scheduled Tribe (ST) communities in Karnataka by running welfare schemes for them. The alleged irregularities came to the fore after accounts superintendent of the Valmiki Corporation, Chandrasekharan P, was found dead on May 21 last year. He wrote a suicide note alleging illegal transfer of money from the corporation to various bank accounts. Former Karnataka tribal affairs minister B Nagendra and five others allegedly linked to him were arrested by the ED in this case. Nagendra later got bail. Nagendra told the ED that J G Padmanabha, the managing director of the corporation under his ministry, "fraudulently" transferred funds of the corporation without his knowledge or approval from the board. He denied any wrongdoing and said that he did not benefit personally from the siphoned funds. Also Read | Cong MLA convicted in iron ore export case Padmanabha told the ED that he was acting on the orders of the higher officials, including Nagendra, and he had no real control over the fraudulent activities. Nagendra, an MLA from Bellary rural seat, resigned as minister in the face of these allegations. According to an ED chargesheet filed last year, two of Nagendra's personal assistants and an associate "admitted" to handling large sums of money, which aligns with the broader scheme of siphoning funds for electoral purposes. Nagendra, the agency said, handled a "substantial portion" of the proceeds of crime, primarily in the form of cash, which was used to support activities related to the Lok Sabha elections. "This cash, siphoned from the Valmiki Corporation, was received and distributed by Vijay Kumar Gowda, personal assistant to B Nagendra, under his direct instructions," the ED said. Gowda recorded in his statement with the ED that he had handed over cash to the persons instructed by Nagendra which "eventually went to party workers and voters, following instructions from B Nagendra, for the purpose of election-related activities", the agency said. "To incentivise voters to cast their vote in favour of Sh. E Tukaram, the INC (Congress) candidate, ₹200 was distributed to each voter. "Additionally, ₹10,000 was allocated to each polling booth to compensate the Congress party workers responsible for assisting voters and overseeing the booths," the ED said in its chargesheet filed last year. The ED claimed that the three MLAs "ensured" that the cash was disbursed to voters and party workers in their respective constituencies and this was " corroborated" by the evidence gathered during the investigation. It said that a total of 7,40,112 voters in Bellary were given ₹200 each from the Valmiki funds, totalling more than ₹14 crore, apart from ₹10,000 each to party workers in each booth, totalling over ₹72 lakh. The probe, the ED earlier said, uncovered a "complex" money laundering operation within the corporation with more than ₹187.33 crore intended for welfare schemes being fraudulently siphoned off from the corporation's account between March and May last year.
Scroll.in
2 days ago
- Politics
- Scroll.in
ED raids premises linked to Congress MP E Tukaram, 3 MLAs in Karnataka ST corporation scam case
The Enforcement Directorate on Wednesday conducted searches at premises linked to Congress MP from Ballari E Tukaram and three MLAs in Karnataka in a case about alleged irregularities in the state Maharshi Valmiki Scheduled Tribes Development Corporation, PTI reported. Five locations in Ballari and three in Bengaluru belonging to Tukaram and the three MLAs – the Congress' Nara Bharath Reddy, JN Ganesh and NT Srinivas – were being searched under provisions of the Prevention of Money Laundering Act, the news agency quoted unidentified officials as saying. Commenting on the searches, Chief Minister Siddaramaiah said that the state government would not support any violation of the law nor come in the way of its implementation, PTI reported. 'Let them do whatever they want in accordance with the law…We won't obstruct it,' he said. The case pertains to the alleged misappropriation of funds belonging to the state Maharshi Valmiki Scheduled Tribes Development Corporation. The matter came to light in May 2024 after its accounts superintendent, Chandrashekhar, died by suicide. In a note left behind, Chandrasekhar alleged that funds to the tune of Rs 187 crore had been transferred from the corporation's bank account. A Special Investigation Team set up by the Karnataka government is looking into the allegations of misappropriation of funds. The team has arrested 14 persons in the case, including two officials of the corporation – managing director Padmanabha GJ and accounts officer Parashuram Dugganavar, The Indian Express reported. The Enforcement Directorate has also claimed that Rs 20.19 crore of the funds siphoned from the Maharshi Valmiki Scheduled Tribes Development Corporation was used to support the Tukaram's campaign from Ballari constituency during the 2024 Lok Sabha elections.
Time of India
2 days ago
- Politics
- Time of India
ED searches: Will not not support any violation of law, says Karnataka CM Siddaramaiah
Chikkaballapura (Karnataka): Commenting on the Enforcement Directorate (ED) conducting searches against a Congress MP and three MLAs, Karnataka Chief Minister Siddaramaiah on Wednesday said his government will not support any violation of the law, nor will come in the way of implementation of law. The ED conducted searches against Congress Ballari MP E Tukaram and three MLAs of the party as part of a money laundering investigation into the alleged Valmiki scam-linked money laundering case, official sources said. "What should I do? The ED has conducted raids. Let them do whatever they want in accordance with the law. We will not support any violation of law. We will not come in the way of the implementation of the law. We won't obstruct it," Siddaramaiah said in response to a question. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop In Punjab - Watch What Happens Happy in Shape Undo The ED said five premises in Ballari and three in Bengaluru city are being searched under the provisions of the Prevention of Money Laundering Act (PMLA). These include houses belonging to Tukaram and MLAs Nara Bharath Reddy (Bellary city), J N Ganesh (Kampli) and N T Srinivas (Kudligi). The sources said the searches are being conducted in order to gather evidence on the allegation that funds siphoned off from the accounts of the Karnataka Maharshi Valmiki ST Development Corporation (KMVSTDC) were used for election expenses -- to distribute cash to voters and Congress workers of the Ballari seat during the 2024 Lok Sabha elections .
