Karnataka Valmiki Corporation Scandal: Money Laundering Probe Widens

The money laundering investigation into Karnataka Valmiki Corporation has expanded, focusing on several government and private individuals. The Enforcement Directorate (ED) suspects misuse of crores of rupees for electoral malpractices and luxurious purchases. The scandal involves key figures, including B Kallesh and former minister B Nagendra, amid corruption allegations.

The money laundering probe into the alleged financial irregularities within Karnataka's Valmiki Corporation is intensifying as investigators widen their scope to include multiple government and private individuals. Sources indicated that these individuals are suspected of receiving slush funds amounting to crores of rupees.

The Enforcement Directorate (ED) is preparing to share a report with the Election Commission (EC) regarding alleged electoral malpractices. The ED had earlier claimed that a substantial amount of misappropriated funds from the Corporation were utilized for purchasing liquor during Lok Sabha elections and acquiring luxury vehicles.

The role of B Kallesh, Additional Director of the state Social Welfare Department, has come under scrutiny. Kallesh alleged that federal agency officials pressured him to implicate Chief Minister Siddaramaiah, arrested former minister and Congress MLA B Nagendra, and the finance department. Kallesh, who was recently suspended for corruption, identified Deputy Director Manoj Mittal and Assistant Director Murali Kannan of the ED.

Kallesh's complaint prompted the state police to register an FIR against the two ED officers in Bengaluru, reportedly under duress from high-ranking officials seeking to relieve him from suspension. The ED and CBI are jointly investigating the corruption charges against Kallesh.

Following the police complaint, the ED sought relief from the Karnataka High Court, requesting the FIR against its officers be quashed. The High Court stayed the FIR, acknowledging that such probes could hinder officials from performing their duties. Justice M Nagaprasanna likened the situation to 'innovative filmy style ideas' and warned against opening a 'Pandora's box.'

The ED continues to record statements from several government and private individuals linked to the case, with further summons expected. The ED claimed that Nagendra's associates diverted around Rs 90 crore to 18 fake accounts in Andhra Pradesh and Telangana, with funds dispersed through shell accounts.

The scandal unravelled following the suicide of accounts superintendent Chandrasekharan P on May 21, who left a note alleging illegal transfers from the Corporation's funds. The incident led to the suspension of two officials and the resignation of Minister Nagendra. The Congress government established a Special Investigation Team (SIT), which has so far arrested 11 individuals.

Chandrasekharan's note revealed unauthorized transfers of Rs 187 crore from the Corporation's accounts, with Rs 88.62 crore illegally deposited into accounts of some IT companies and a Hyderabad-based cooperative bank.

(With inputs from agencies.)