• Source:JND

Valmiki Corporation Scam: Former Karnataka Minister B Nagendra was taken into custody on Friday by the Enforcement Directorate (ED) in connection with the alleged Valmiki Development Corporation scam.The move comes after ED conducted raids at several locations on Wednesday linked to B Nagendra and MLA Basanagouda Daddal in relation to 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 underway over allegations of illegal money transfer from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. The former Karnataka Minister dismissed all the allegations against him and said that he would come out clean following 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.

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"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,” said Karandlaje, as quoted by news agency ANI.

"Siddaramaiah is the Finance Minister. Without his instructions, no one will have the courage to transfer Rs 187 crores from bank to companies,” she further stated.

Meanwhile, Karnataka Deputy CM DK Shivakumar said that there was no need for the ED raid.

"There was no need for an ED raid. Our SIT officers have already done an investigation and money has been recovered. CBI has 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 said.

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The case came to light after an official of the Corporation, identified as Chandrasekaran (45), a resident of the Kenchappa colony in Vinobanagar, allegedly died by suicide on May 26 after leaving a note mentioning an allegation of a multi-crore corruption in the Corporation. Chandrasekaran was a superintendent with the MVDC and was posted at the 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.

(With Agency Inputs)