ED seizes assets worth Rs 5 crore in Valmiki Corporation scam
ED provisionally attaches land, flats, and bank deposits of four businessmen linked to the Karnataka Scheduled Tribes development fund fraud
The Enforcement Directorate (ED) has provisionally seized assets worth Rs 5 crore in connection with the alleged multi-crore scam at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.
The seized immovable assets include land and flats valued at Rs 4.45 crore belonging to businessmen Nekkenti Nagraj, Chandra Mohan, Golapalli Kishore Reddy, and Etakeri Satyanarayana. Movable assets of Rs 50 lakh in bank accounts held in First Finance Credit Cooperative Bank Ltd. were also frozen, the ED said.
Also read: Sitharaman on Valmiki scam: Is it Congress's ‘Nyay’ to siphon off SC/ST money?
What ED probe has found
The case came to light after the suicide of a corporation employee, Chandrashekhar, on May 26, 2024. Based on FIRs filed by the state police and the CBI, the ED launched its probe. Investigations revealed that the accused had illegally transferred funds from the corporation’s accounts and siphoned off Rs 89.63 crore of public money using forged documents. Former Karnataka minister B Nagendra was jailed in connection with the case but is currently out on bail.
The ED investigation further found that a fake account was opened at the Union Bank branch on MG Road, into which corporation funds were diverted. The money was later routed through 18 fictitious accounts and transferred to the First Finance Credit Cooperative Bank in Hyderabad. The scam proceeds were allegedly distributed among the accused through shell accounts, cash, and silver.
Also read: Karnataka | After Valmiki scam, illegal fund transfer scam hits Waqf Board
Embezzled funds used in polls, says probe
Probe findings suggest that the embezzled funds were used during the Lok Sabha elections in the Ballari constituency. In addition, luxury cars, including a Lamborghini, were purchased with the money. Housing suppliers, silver traders, and car dealers have reportedly confirmed these transactions.
Since the accused had used the illicitly acquired income for personal purposes, assets worth Rs 5 crore have now been seized. ED officials said further investigation in the case is underway.
(This article was originally published in The Federal Karnataka)