Jun 11, 2025 11:59 IST
First revealed on: Jun 11, 2025 at 11:07 IST
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The Enforcement Directorate (ED) on Tuesday started searches on the residences of Congress MP E Tukaram, occasion MLAs Bharath Reddy, J N Ganesh and former minister B Nagendra in Ballari in reference to the alleged Rs 94.73 crore Karnataka Maharshi Valmiki Scheduled Tribes Growth Company rip-off which surfaced in Could final 12 months after an worker of the company died by suicide.
Final 12 months, the ED had arrested Nagendra following his resignation over hyperlinks to the rip-off. A particular courtroom later granted bail to him within the cash laundering case associated to the alleged diversion of Rs 94.73 crore of funds from the ST company, saying the ED had not proven proof of him receiving and utilizing the rip-off cash.
The company has alleged that Rs 20.19 crore of the diverted funds was used to assist the election of Tukaram in the course of the 2024 Lok Sabha polls from Ballari constituency, and for Nagendra’s private bills.
The ED searches are happening in Ballari amid hypothesis that the Congress is eager on bringing Nagendra, an MLA belonging to the Valmiki Nayak ST group, again into the Cupboard on account of the shortage of proof in opposition to him within the probe by the state SIT.
The alleged rip-off surfaced on Could 26, 2024, after an accounts officer within the company died by suicide after a portion of the Rs 187 crore deposited from the state treasury and different financial institution accounts into the company’s new account – on the MG Highway department of the Union Financial institution of India – disappeared.
The probe by a Particular Investigation Crew (SIT) in Karnataka has discovered that the funds from the ST company have been allegedly siphoned off to 18 major accounts in Telangana and Andhra Pradesh created by one Satyanarayana Verma, who was accused in the same rip-off in Chhattisgarh in 2022, and his associates. The funds have been allegedly routed to over 170 secondary accounts from the place they have been withdrawn.
The SIT has recovered nearly all the quantity of funds allegedly diverted from the ST company from the accused, together with luxurious automobiles and jewelry purchased by them.
The rip-off rocked the Karnataka legislature in July 2024 after Opposition events sought Chief Minister Siddaramaiah’s resignation, saying he ought to take “ethical duty” for the fraud.
Over 20 individuals have been linked to the fraud to this point, and 14 have been arrested by the SIT. The accused embrace two officers of the ST company – MD Padmanabha G J and accounts officer Parashuram Dugganavar – and eight others, together with shut associates of Nagendra. The SIT didn’t identify Nagendra as an accused in its chargesheet, indicating the shortage of proof.