The Enforcement Directorate (ED) raided multiple locations linked to four Congress leaders in the Ballari district in Karnataka on Wednesday (11th June). As per reports, the raids were conducted at several locations connected with Congress Ballari MP E Tukaram, and Congress MLAs, Nara Bharath Reddy, J N Ganesh, N T Srinivas and former Minister B Nagendra and his close aide Govardhan Reddy.
As per reports, the central agency searched five locations in Ballari and three sites in Bengaluru under the provisions of the Prevention of Money Laundering Act (PMLA). The raids are reportedly related to the investigation of an embezzlement of funds worth crores from the Karnataka Valmiki Scheduled Tribes Development Corporation Limited (KVSTDCL). The money was allegedly used to fund the 2024 Lok Sabha election campaign.
In its chargesheet filed last year, the ED said that two of Nagendra’s personal assistants and an associate “admitted” to handling large sums of money. It added that the three MLAs ensured that the cash was disbursed to voters and party workers in their respective constituencies.
What is the Valmiki Scam
The alleged scam surfaced after the superintendent of corporation accounts, Chandrasekharan P was found dead on 21 May 2024. A suicide note recovered from him mentioned about an unauthorised trabsfer of โน187 crore from the corporation, out of which, โน88.62 crore was illegally deposited into IT company accounts and cooperative bank in Hyderabad. This is resulted in the suspension of two officials and the resignation of Karnataka Tribal Welfare and Sports Minister Nagendra, who was later arrested by the agency. The corporation, set up in 2006, aimed at the socio-economic development of Scheduled Tribe communiyies in the state by running welfare schemes for them.
The investigation in the case is being carried out by the Karnataka Police, the CBI and the ED.
