Valmiki Corporation scam: ED takes ex-minister Nagendra into custody

Bengaluru, NT Bureau: The Enforcement Directorate (ED) on Friday took former Karnataka minister B Nagendra into custody in connections with the alleged irregularities in Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL).

The for mer minister for sports, youth affairs and Scheduled Tribes (ST) welfare, who is accused of money laundering, was picked up for questioning, and taken to the ED office from his residence.

“I'm being brought from my home. I don't know anything,” Nagendra told mediapersons as he was being taken to the ED office in Shanti Nagar.

Officer suicide proves trigger

On May 26, the alleged scam came to light when superintendent of KMVSTDCL P Chandrashekharan (48) died by suicide and in his death note, spoke of siphoning away of Rs 187 crore of the Corporation’s money to an unauthorized bank account.

He also claimed that Rs 88.62 crore was transferred to accounts belonging to IT companies of note and a Hyderabad-based cooperative bank.

Chandrasekharan also named the KMVSTDCL’s now-suspended Managing Director JG Padmanabh, accounts officer Parashuram G Durugannavar and Union Bank of India Chief Manager Suchismita Rawal in his suicide note, while also claiming that a "minister" had issued verbal orders for transferring the funds.

Under pressure from Chief Minister Siddaramaiah, Nagendra tendered his resignation from the Cabinet on June 6.