Enforcement Directorate has raided the premises of Karnataka Congress leader and former Tribal Welfare Minister B. Nagendra and Raichur Rural MLA, B Daddal, as part of a money laundering probe linked to the alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. B. Daddal was the Chairperson of the Corporation.

Akashvani’s correspondent reports that the searches are going on in the premises of both the leaders and at 20 locations in Karnataka, Andhra Pradesh and Telangana. The alleged scam came to light after the accounts superintendent of the Development Corporation Chandrasekharan P committed suicide leaving behind a suicide note alleging the illegal transfer of 187 crore rupees from the bank account of the state-run Corporation.

Subsequently, B Nagendra who was Minister for Tribal Welfare had to resign. It was alleged that an amount of 88.62 crore rupees was illegally deposited into various accounts of some IT companies and a Hyderabad-based Cooperative bank. The state government had constituted the Special Investigation Team of the Karnataka Police CID to probe the allegations. The bank from where the money was transferred had referred the alleged scam to the CBI.