Valmiki Corporation scam: ED detains former Karnataka Minister B Nagendra

BENGALURU: The Enforcement Directorate (ED) on Friday detained former Karnataka Minister B Nagendra in connection with the alleged Valmiki Development Corporation scam case. The development comes after ED conducted raids at many places on Wednesday linked to former Karnataka Minister B Nagendra and MLA Basanagouda Daddal in connection with the alleged embezzlement of funds in Valmiki Development Corporation.

On June 6, Nagendra said that he has voluntarily decided to resign as an investigation is going on over the allegations of illegal money transfer from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. The former Karnataka Minister dismissed all the allegations against him and said that he'd come out clean after the investigation.

Earlier on Thursday, Union Minister and BJP MP Shobha Karandlaje alleged that Karnataka Chief Minister Siddaramaiah was involved in the Valmiki Development Corporation scam and demanded his resignation.

Shobha Karandlaje said, "On July 3, I wrote to the Union Home Minister and demanded a CBI probe into this. When the CBI probe is going on, the Karnataka government formed an SIT to hide this scam. Now the SIT is not helping the CBI, but the probe is going on and the ED conducted raids. At various places, searches are being conducted in Hyderabad, Bengaluru and Bellary. The Karnataka CM is involved in this so we demand the resignation of Siddaramaiah. He should resign and face the probe then only justice will be delivered."

She further said, "Siddaramaiah is the Finance Minister. Without his instructions, no one will have the courage to transfer Rs 187 crores from bank to companies." Over the Enforcement Directorate raids in the Valmiki Development Corporation case, Karnataka Deputy CM said that there was no need for the ED raid. "There was no need to ED raid. Our SIT officers have already done an investigation and money has been recovered. CBI have already filed an FIR and they have provisions to take up the investigation, ED doesn't have that provision. There is a procedure for how it can be done, not on NR Ramesh or somebody's complaint ED can do an investigation," he added.

The corruption case of Maharshi Valmiki Scheduled Tribes Development Corporation came to light after an official of the Corporation died by suicide and left a note containing an allegation of multi-crore corruption in the corporation.

The official identified as Chandrasekaran (45), a resident of the Kenchappa colony in Vinobanagar, allegedly died by suicide on May 26 after leaving a note containing an allegation of multi-crore corruption in the corporation. Chandrasekaran was a superintendent with the MVDC and was posted at its Bengaluru office. In a six-page suicide note recovered by police, Chandrasekaran mentioned the names of three officials and alleged corruption worth crores in the corporation, demanding action against the named officials.