The Enforcement Directorate has provisionally hooked up belongings value Rs 26.27 crore within the Karnataka Bhovi Improvement Company (KBDC) rip-off case. The properties belong to former KBDC normal supervisor B Ok Nagarajappa, former managing director R Leelavathy, and others.
The attachment was made as a part of ongoing investigations into alleged monetary irregularities throughout the company.
The ED stated in a press release on Monday, “The investigation revealed that B Ok Nagarajappa, the then Normal Supervisor, 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/monetary help to the financial institution accounts of greater than 750 faux beneficiaries, which had been fraudulently opened by them.
“Later, the quantities so sanctioned from KBDC had been diverted to the financial institution accounts of assorted entities viz Adithya Enterprises, Somanatheswara Enterprises, New Desires Enterprises, Harntiha Creations, Annika Enterprises–managed by B Ok Nagarajappa and others–which had been used within the buy of properties, making funds to middlemen and additional diverted to financial institution accounts of people and numerous different entities.”
Arrested by the ED on April 5 and April 12, respectively, Nagarajappa and Leelavathy are in judicial custody within the rip-off case.
The ED alleges that the cash misappropriated from the Karnataka Bhovi Improvement Company was primarily utilized by the accused to keep up an opulent way of life and to amass immovable and movable properties of their identify and within the names of their members of the family.