Bengaluru: The Enforcement Directorate (ED) arrested B.K. Nagarajappa, former General Manager (GM) of Karnataka Bhovi Development Corporation (KBDC) for his alleged involvement in misappropriation of funds.

According to the ED, Nagarajappa was arrested on Apr. 5 and was produced before the Prevention of Money Laundering (PML) Special Court which had remanded the accused to 14-day custody.

The investigation has revealed about the misappropriation and laundering of money tuning up to Rs. 97 crore for which the Police had registered FIRs. On Apr. 4, the ED officials had conducted raids on 10 places including KBDC and had seized several documents. There are also several doubts on the role played by one Jeeva, who committed suicide.

CID sleuths have also investigated into the case. The investigation has revealed that Rs. 7.16 crore was transferred to Annika Enterprises owned by Jeeva, Rs. 10.9 crore to Harnitha Creations registered in his sister’s name and other companies where Jeeva is a share holder.

Further, Rs. 1.48 crore has been transferred in various stages to one Mangala Ramu, sister of Leelavathi, former General Manager of KBDC.