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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RS proceedings adjourned for day amid opposition protest over Adani bribery row, other issues
New Delhi(PTI): Rajya Sabha proceedings were adjourned for the day on Wednesday as opposition members insisted on a discussion on various issues, including bribery charges related to the Adani Group.
The proceedings were briefly adjourned in the morning session due to opposition protest, and when the House re-assembled at 11.30 AM, there were identical scenes.
This prompted Chairman Jagdeep Dhankhar to adjourn the proceedings for the day, saying the "House is not in order".
The trobule started after Dhankhar rejected 18 notices under a rule of the House to suspend scheduled business and take up issues mentioned in the notices.
The notices related to demand for 'constitution of a JPC to investigate the alleged misconduct, including corruption, bribery, financial irregularities of the Adani Group in connivance with other authorities', violence in Sambhal in Uttar Pradesh and rising incidents of crime in the national capital.
"Upper House needs to reflect and follow well-established traditions that ruling of the Chair requires reference and not cause differences. I have, in detail, given reasons why, in these situations, notices are not being accepted," Dhankhar said while rejecting the notices under Rule 267 of the House.
On Monday also, the Rajya Sabha proceedings were adjourned for the day during the morning session itself as opposition insisted on raising the issues related to Adani Group.
There was no sitting of the House on Tuesday.
The Adani Group said on Wednesday that Gautam Adani, and his nephew Sagar have not been charged with any violation of the US Foreign Corrupt Practices Act (FCPA) in the indictment that authorities filed in the New York court in an alleged bribery case.
