Valmiki Corporation Scam: ED takes Congress MLA into custody

The Enforcement Directorate (ED) officials took former Karnataka Tribal Affairs & Sports Minister B Nagendra into custody in connection with illegal transfer of funds from the Maharshi Valmiki ST Corporation, which is charged with implementing welfare programmes for scheduled tribe members.
Nagendra, who is also the Congress MLAs from Ballari Rural and Corporation MD Basanagouda Daddal (Raichur Rural) had been under house arrest since Wednesday when the ED sleuths raided their homes, and other places.

"I have not done anything wrong. I am not aware of anything," Nagendra told the media when ED wastaking him into custody.


The ED officials had conducted search operations in Karnataka, Telangana and Andhra Pradesh over a scandal involving illegal transfer of Rs 89.63 crore of government funds to unknown people in Hyderabad. The unearthing of the scam led to the resignation of state’s tribal welfare and sports minister B Nagendra.
MoS (labour & MSME) Shobha Karandlaje has written to Union Home Minister Amit Shah urging him to order a detailed probe into the unlawful diversion of funds meant for the welfare of STs.

Deputy CM DK Shivakumar, however, has said the series of ED raids were not necessary. Shivakumar, who is also the president of Karnataka Pradesh Congress Committee (KPCC), said a special investigation team (SIT) of the state police was already conducting investigations into illegal diversion Maharshi Valmiki ST Development Corporation's funds.