India
Valmiki corporate scam: Karnataka Congress MLA B Nagendra declared ‘mastermind’ by ED | India News – Times of India
According to the ED, Nagendra allegedly orchestrated the scam with the help of 24 others, including key associates like Satyanarayana Varma, Etakari Satyanarayana, JG Padmanabha, Nageshwar Rao, Nekkenti Nagaraj and Vijay Kumar Gowda. The agency’s investigation alleges that under Nagendra’s influence, the company’s account was shifted to the MG Road Branch without proper permission, where Rs 187 crore, including Rs. 43.33 crore from the public purse under the Ganga Kalyana schemewere filed in violation of government guidelines.
“These funds were then siphoned through multiple shell accounts and converted into cash and bullion,” the ED alleged. The agency also said that Rs 20.19 crore of the diverted funds was used to support a candidate contesting the 2024 Lok Sabha elections. Bellary constituency and for Nagendra’s personal expenses. Evidence of these expenses was found during searches and supported by financial analyzes and statements from the central investigation agency.
The money laundering case stems from an FIR filed by the Karnataka Police and the CBI, alleging that around Rs 89.62 crore was diverted from the Valmiki Corporation accounts to fake accounts in Andhra Pradesh and Telangana and later laundered through shell entities . The alleged irregularities came to light after the death of Chandrasekharan P, the Corporation’s chief inspector of accounts, who wrote a suicide letter alleging illegal transfer of money from the Corporation to various bank accounts, including Rs 88.62 crore that had been illegally deposited into the accounts of a number of IT companies. companies and a Hyderabad-based cooperative bank.
“B Nagendra, who resigned after the scam came to light, is also accused of obstructing the investigation by destroying mobile phones and instructing others to remain silent. ED arrested Nagendra and five other key suspects during the probe,” said the ED.
