The Central Bureau of Investigation (CBI) on Monday raided 16 locations in Karnataka and Andhra Pradesh in reference to the alleged diversion of funds belonging to the Karnataka Maharshi Valmiki Scheduled Tribes Growth Company Restricted (KMVSTDCL) and stated that the cash was routed to mates and family members of former Karnataka minister L Nagendra.
“Throughout the investigation, additional situations of diversion of presidency funds belonging to the Scheduled Tribes Welfare Division and the Karnataka German Technical Coaching Institute (KGTTI) have been established,” the central company stated, including that the ST Welfare Division falls below the executive management of the Scheduled Tribe Welfare Ministry, which was below Nagendra on the time.
“Investigation revealed that Rs 2.17 crores of ST Welfare Division funds have been transferred from the account maintained with Financial institution of Baroda, Siddaiah Street Department, Bengaluru, by middleman corporations similar to M/s SKR Infrastructure and M/s Golden Institution, into the account of M/s Dhanalaxmi Enterprises belonging to Nekkanti Nagaraj, a detailed affiliate of B Nagendra,” the CBI stated.
“Out of those funds, roughly Rs 1.20 crores have been additional routed into the accounts of the associates and family members of Nagendra, together with his sister, brother-in-law, and private assistant,” it added.
The CBI additional stated that Rs 64 lakh belonging to KGTTI was diverted from its account at Canara Financial institution’s Wilson Backyard (Hombegowdanagar) department in Bengaluru to M/s Sadguru Schooling Belief and M/s Sadguru Options, thereafter to M/s Skillpoint Coaching, and in the end to entities similar to M/s Type Machine, earlier than reaching N Ravikumar, Nagaraj’s brother, and N Yashwanth Chowdhry, Nagaraj’s nephew.
The cash laundering facet of the case is being investigated by the Enforcement Directorate. Within the final week of August, the ED connected immovable properties within the type of land and flats value Rs 4.45 crore belonging to Nagaraj, Chandra Mohan, Golapalli Kishore Reddy, Etakeri Satyanarayana, and movable property within the type of financial institution accounts to the extent of Rs 50 lakh in First Finance Credit score Cooperative Financial institution Restricted.
Final yr, the ED had arrested Nagendra for allegedly misappropriating the company’s funds.
Story continues under this advert
In keeping with the CBI, Rs 84.63 crore of the company was misappropriated by unlawful transfers or withdrawals between February 21 and Could 6, 2024. The BJP in Karnataka has alleged that the siphoned cash was used for the Lok Sabha elections by the Congress.
Whereas the ED and CBI have continued their probes, in November final yr, sacked BJP MLA Basanagouda Patil approached the Karnataka Excessive Courtroom in search of that instructions be issued to the CBI to file a last report and submit interim standing experiences. The CBI has filed 4 standing experiences earlier than the Karnataka Excessive Courtroom, which is monitoring the probe.