Valmiki Corp. funds used to purchase liquor before general elections: ED
New Delhi, Jul 17: The Enforcement Directorate on Wednesday alleged that a "substantial" amount of funds "misappropriated" from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited were used to procure liquor during the recently-concluded Lok Sabha elections apart from some highly-priced vehicles.
The federal probe agency that has arrested sitting Congress MLA and former cabinet minister of the state B Nagendra in this case recently issued a statement alleging the associates connected to the legislator were "implicated in fund diversion and cash management."
Nagendra, a former minister of Tribal Welfare and Sports, was arrested by the ED last week after it conducted raids against him and another Congress MLA from Raichur rural seat Basanagouda Daddal in Bengaluru.
The former minister is in ED custody till July 18.
Probe found, the agency claimed, that "about Rs 90 crore were diverted to 18 fake accounts in Andhra Pradesh and Telangana (from the funds of the Valmiki corporation). The diverted funds were then layered through fake and shell accounts, with cash and bullion dispersed among the accused.
"B Nagendra, the former minister, also resigned following the exposure of the scam," the ED said.
It added that "a substantial amount of funds were utilised to procure a significant quantity of liquor just prior to the general elections.
"Additionally, high-end vehicles, including a Lamborghini, were purchased using proceeds from the scam," it said.
The general elections were held during April-May and the results were declared on June 4.
During the searches at the premises of Nagendra and Daddal (Corporation's Chairman), ED recovered "incriminating documents linking them to the handling of diverted funds during recent general elections."
"Additionally, associates closely connected to B Nagendra were implicated in fund diversion and cash management," it said.
The agency said some "incriminating" evidence related to the handling of these illicit funds was also discovered at the residence of Daddal.
The alleged scam came to fore after accounts superintendent of the Corporation, Chandrasekharan P was found dead on May 21. He wrote a suicide note alleging illegal transfer of money from the Corporation to various bank accounts.
Subsequently two officials were suspended. With mounting pressure minister Nagendra resigned on May 29.
The Congress government thereafter constituted a Special Investigation Team (SIT), which has so far arrested 11 people in connection with the case.
In the suicide note, Chandrasekharan alleged that there was an unauthorised transfer of Rs 187 crore belonging to the state-run Corporation from its bank account.
Further, Rs 88.62 crore was illegally deposited into various accounts of some IT companies and a Hyderabad-based cooperative bank.
While the state government has constituted the SIT to investigate it, the Central Bureau of Investigation is also probing it simultaneously based on a complaint by the Union Bank of India.
The agency questioned Nagendra's wife Manjula on Wednesday as part of this investigation.
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UDF leaders see local body poll trends as pointer to 2026 Assembly elections in Kerala
Thiruvananthapuram (PTI): Buoyed by the strong performance of the Congress-led UDF in the local body polls, KPCC president Sunny Joseph said on Saturday that the front's results indicated the people had rejected the LDF government.
According to early trends, the UDF was leading in more grama panchayats, block panchayats, municipalities and corporations than the LDF.
The local body polls were held in two phases in the state earlier this week.
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Speaking to reporters here, Joseph said the people of Kerala had extended their support to the UDF.
"We could expose the LDF government’s anti-people stance and the people understood it. The LDF’s fake propaganda was rejected by the people. The UDF is moving towards a historic victory," he said.
He said a united effort, proper preparations, good candidate selection and hard work had resulted in the Congress and the UDF’s victory in the elections.
Asked about the prospects in the Thiruvananthapuram Corporation, Joseph said the party was studying the matter and would comment later.
LDF convenor T P Ramakrishnan said the results would be closely examined.
According to him, the government had done everything possible for the people.
"Why such a verdict happened will be examined at the micro level. People’s opinion will be considered and further steps will be taken," he said.
He added that decisions would be taken after analysing the results. "If any corrective measures are required, we will initiate them and move forward," he said.
AICC leader K C Venugopal said the results showed that people had begun ousting those who, he alleged, were responsible for the loss of gold at Lord Ayyappa’s temple.
"This trend will continue in the Assembly elections as well. It is an indication that the people are ready to bring down the LDF government," he said.
Venugopal said the UDF had registered victories even in CPI(M) and LDF strongholds.
"I congratulate all UDF workers for their hard work. Congress workers and leaders worked unitedly," he said.
Referring to remarks made by Chief Minister Pinarayi Vijayan against the Congress on polling day, Venugopal said the voters had responded through the verdict.
"I do not know whether the chief minister understands that the people are against him. Otherwise, he does not know the sentiment of the people. The state government cannot move an inch further," he said.
He said the results indicated a strong comeback for the UDF in Kerala.
Asked whether the Sabarimala gold loss issue had affected the LDF in the local polls, Venugopal said the CM and the CPI(M) state secretary did not take the issue seriously.
"We took a strong stand on the matter. The BJP played a foul game in it," he alleged.
On the BJP's role in the local body elections, Venugopal alleged that the party operated with the CPI(M) 's tacit support.
"The CPI(M) supported the central government on issues such as PM-SHRI, labour codes and corruption in national highway construction. The CPI(M) is facing ideological decline, and the state government’s policies are against the party’s own decisions," he said.
Meanwhile, LDF ally Kerala Congress (M) leader Jose K Mani said the party could not win all the wards it had expected in the elections.
He congratulated winners from all parties and said the party would closely examine the losses and identify shortcomings. "Later, we will take corrective measures," he added.
Senior Congress leader and MP Rajmohan Unnithan said the trends in the local body elections indicated that the UDF would return to power in the 2026 Assembly elections.
"We will win 111 seats as in 1977 and return to power in 2026. The anti-government sentiment of the people is reflected in the elections," he said.
Unnithan said the people were disturbed and unhappy with the present government.
"The trend indicates the end of the LDF government," he added.
CPI(M) MLA M M Mani said the people had shown ingratitude towards the LDF despite benefiting from welfare schemes.
"After receiving all welfare schemes and living comfortably, people voted against us due to some temporary sentiments. Is that not ingratitude," he asked.
Mani said no such welfare initiatives had taken place in Kerala earlier.
"People are receiving pensions and have enough to eat. Even after getting all this, they voted against us. This is what can be called ingratitude," he said.
Muslim League state president Panakkad Sayyid Sadiq Ali Shihab Thangal said the results were beyond expectations.
"The outcome points towards the Secretariat in Thiruvananthapuram, indicating that a change of government is imminent. We are going to win the Assembly election," he said.
