3 days ago
Enforcement Directorate Targets Karnataka Congress Leaders In Valmiki Corporation Probe
The Enforcement Directorate launched coordinated searches across eight locations in Karnataka on Wednesday, targeting properties associated with Congress parliamentarian E Tukaram from Ballari constituency and several other party leaders and legislators in the state, according to official sources.
These enforcement actions form part of an expanding investigation into suspected financial irregularities involving the Karnataka Valmiki Scheduled Tribes Development Corporation Limited (KVSTDCL). Authorities allege that misappropriated funds from this tribal development organization were subsequently channeled to support electoral activities during the recent Lok Sabha polls.
The current raids represent an escalation of the probe that began in July 2024, when enforcement officials searched approximately 20 premises across Karnataka, Andhra Pradesh, and Telangana. During that earlier operation, investigators focused on properties linked to Congress legislator Basanagouda Daddal, who served as chairman of the tribal development corporation.
The financial scandal came to light following the tragic death of corporation accounts superintendent Chandrasekharan P on May 21, 2024. His final written statement detailed allegations of unauthorized fund transfers totaling Rs 187 crore from the corporation's accounts, with Rs 88.62 crore allegedly moved illegally into technology company accounts and a cooperative banking institution in Hyderabad.
In response to these revelations, administrative action was swift. Two corporation officials faced suspension, while Karnataka's Tribal Welfare and Sports Minister Nagendra tendered his resignation before being subsequently detained by enforcement authorities in connection with the alleged financial misconduct.
Karnataka Home Minister G Parameshwara had previously stated that federal enforcement agencies operate with statutory independence and that the state government was not embarrassed by their investigative activities. He noted that a Special Investigation Team was also examining the matter concurrently.
The investigation continues to examine the alleged systematic diversion of funds intended for tribal development programs, with authorities working to trace the complete financial trail and identify all parties involved in the suspected money laundering scheme.
