Enforcement Directorate (ED) officers mentioned Thursday that that they had arrested Karnataka Bhovi Growth Company (KBDC) former Managing Director, R Leelavathy within the ₹100 crore cash laundering case. Earlier, the ED had arrested former Common Supervisor BK Nagarajappa.
Leelavathy was arrested on April 12 and has been remanded to ED custody for seven days. Based on the ED, search operations have been carried out on April 4 below Part 17 of the Prevention of Cash Laundering Act (PMLA), 2002, at a number of areas in Bengaluru. These included the KBDC workplace at VV Tower and residential premises of the accused and suspected people, together with Leelavathy. Through the searches, officers seized incriminating paperwork, digital information, and property particulars allegedly acquired by way of proceeds of crime (PoC).
The investigation revealed that Leelavathy allegedly performed a key function in diverting funds from KBDC by fraudulently creating financial institution accounts within the names of faux entities. She allegedly acted in collusion with different accused people, together with BK Nagarajappa (then GM), Subbappa (then Superintendent of KBDC), and others, officers mentioned, including, funds from KBDC accounts have been allegedly transferred to those bogus entities and subsequently moved to the accounts of family and friends members of the accused.
The ED officers mentioned that a lot of financial institution accounts have been opened to execute the scheme, and several other supposed beneficiaries have been defrauded utilizing a fastidiously crafted modus operandi involving the important thing accused.
Based mostly on proof gathered, the ED officers concluded that R Leelavathy was concerned in cash laundering and had generated and layered proceeds of crime utilizing financial institution accounts held within the identify of her late sister Mangala Ramu. The funds have been then built-in into the monetary system by way of the financial institution accounts of her associates and relations by way of shell entities.
BK Nagarajappa stays in ED custody because the investigation continues.
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