The Enforcement Directorate (ED) on Friday said it has attached assets worth about Rs 8 crore of former Karnataka minister and Congress leader B Nagendra in connection with the Valmiki Development Corporation scam. The seized properties include four residential and commercial properties and a building. The Enforcement Directorate said that this action has been taken under the sections of Prevention of Money Laundering Act (PMLA).
Ed has declared these properties as ‘proceeds of crime’ under PMLA. The remaining crime proceeds could not be ascertained. ED says that B Nagendra may have made other arrangements for these or has hidden them. According to the Enforcement Directorate, the value of the temporarily seized properties is Rs 8.07 crore.
Accused of transferring crores of rupees to fake accounts
In the statement issued by the ED, it has been said that the ED has to attach properties equal to the proceeds of crime in the form of such properties, otherwise further action under PMLA may get hampered.
It is alleged that crores of rupees were withdrawn from the accounts of Karnataka Maharishi Valmiki ST Development Corporation and transferred to fake accounts. It is alleged that after this the money was transferred illegally through fake institutions. Karnataka Police and CBI had registered an FIR in this regard. During the investigation, a case of illegal money transfer came to light. B Nagendra, who was jailed in the Valmiki Abhiraddhi Nigam scam, was later released on bail.
Know what is Valmiki Scam
The Valmiki Scam is a major financial fraud case in Karnataka, involving alleged misappropriation of around Rs 94 crore of government funds meant for schemes for the welfare of the Scheduled Tribe community.
This case is being investigated by many agencies including the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) and due to this, former Karnataka Minister B Nagendra had to resign and was arrested, although he is currently on bail.
Input: TV9 Kannada
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