KBDC Fraud: Former General Manager Arrested in 97 Crore Scam

The Enforcement Directorate arrested former KBDC GM B K Nagarajappa linked to a Rs 97 crore money laundering case. Accused of misusing funds meant for the Bhovi community, he allegedly diverted money using fake accounts and created bogus entities. The ED seized incriminating documents and digital records.

The Enforcement Directorate (ED) has taken the ex-general manager of the Karnataka Bhovi Development Corporation (KBDC), B K Nagarajappa, into custody following a probe into misappropriations amounting to Rs 97 crore. The arrest occurred after searches revealed irregularities with funds intended for Bhovi community welfare.

Legal proceedings have commenced with a special PMLA court in Bengaluru sending Nagarajappa to a 14-day ED custody. Investigations stemmed from Karnataka Police FIRs highlighting the misuse and diversion of substantial funds from the KBDC. The ED asserts that Nagarajappa played a central role in channeling funds through fake accounts.

The funds are believed to have been laundered through entities established in collaboration with various accomplices. As authorities intensify their investigation, several documents, digital records, and property details have been seized, further implicating the accused in a calculated financial fraud scheme.

(With inputs from agencies.)