Former Karnataka Minister and Congress MLA B Nagendra was arrested by the Enforcement Directorate (ED) late night on Friday, July 12, related to a money laundering investigation linked to alleged irregularities in a state-run corporation. A special court allowed ED to take Nagendra into their custody till July 18.
The ED is investigating the embezzling of funds in the Maharshi Valmiki Scheduled Tribes Development Corporation Limited during Nagendra’s tenure as the Minister of Tribal Welfare. Nagendra was questioned for more than 13 hours after he was picked up by ED officials on July 12 morning and was arrested in the night.
ED had earlier searched the residences and offices of Nagendra and Congress MLA Basanagouda Daddal, who is also Chairman of the Scheduled Tribes Development Corporation, in Bengaluru and Ballari. The ED's investigation is looking at the alleged misappropriation of Rs 94 crore, which came to light after P Chandrashekaran, a corporation official involved in auditing and coordinating with Union Bank of India, died by suicide on May 26, 2024. Chandrashekaran left behind a six-page note detailing the fraud and naming those involved.
The ED had also questioned the personal assistants of both Nagendra and Daddal regarding their alleged knowledge of the fund diversion. The Special Investigation Team (SIT) appointed by the Karnataka government, which has been investigating the case, has already arrested 11 individuals and seized Rs 40 crore of the alleged embezzled amount.
Nagendra was produced before a special Prevention of Money Laundering Act (PMLA) court on Saturday, July 13.