Bengaluru–The Enforcement Directorate (ED) has provisionally attached four immovable properties valued at ₹8.07 crore belonging to former Karnataka Minister and Congress MLA B. Nagendra in connection with the alleged Tribal Welfare scam, officials said on Friday.
According to the ED’s Bengaluru Zonal Office, the attachment includes residential and commercial land and buildings and has been carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The action is linked to the alleged misappropriation and diversion of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.
In an official statement, the ED said it made extensive efforts to trace the proceeds of crime generated in the case. However, the remaining funds could not be located and are believed to have been either exhausted or concealed. As a result, the agency attached properties of equivalent value to prevent frustration of further proceedings under the PMLA.
The central probe agency initiated its investigation based on multiple FIRs registered by the Karnataka Police and the Central Bureau of Investigation (CBI) in Bengaluru, which pertain to the alleged misuse and diversion of funds meant for Scheduled Tribe welfare.
Earlier, the ED conducted searches at several locations across Karnataka and other states under the PMLA. Six individuals, including Nagendra, were arrested during the course of the investigation. Subsequently, a chargesheet was filed on September 9, 2024, before the Bengaluru Principal City Civil and Sessions Judge against 25 accused persons and entities, including the former minister.
The ED had previously provisionally attached movable and immovable properties worth ₹4.94 crore belonging to other accused in the case. Officials said further investigation is ongoing.
Nagendra was arrested by the ED in July 2024 in connection with the Valmiki corporation money laundering case. He was detained under anti-money laundering provisions and later released on bail.
The Valmiki Tribal scam involves alleged illegal transfers and diversion of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited—an agency established for the welfare of Scheduled Tribes—to fake accounts and shell entities. The alleged scam came to light in mid-2024 following a suicide note left by a corporation official, which claimed that crores of rupees had been siphoned off. (Source: IANS)
