Bengaluru: The sleuths of Enforcement Directorate (ED) have detained former Minister of Youth Empowerment, Sports and Tribal Welfare B. Nagendra, a Congress MLA from Ballari Rural Constituency, this morning. The detention is in connection with its probe into the alleged scam in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation where funds up to Rs. 88 crore were embezzled.

Former Minister B. Nagendra was taken from his Dollar’s Colony residence to ED Office in Shanthinagar. He is expected to be formally arrested later in the day. Nagendra is accused of receiving hawala money and gold biscuits and there is suspicion that transactions of over Rs. 50 crore were made on his behalf.

After 40 hours of investigation, raids and grilling, the ED officials took former Minister Nagendra into custody. Nagendra, who directly oversaw the Corporation’s affairs and finances, resigned from his Ministerial post on June 6.

“I do not know about any irregularities at the corporation. I am innocent and being framed in a political conspiracy,” the Congress MLA told media persons while being taken into the ED office.

MLA Daddal in SIT custody

Meanwhile, Special Investigation Team (SIT) formed by Karnataka Government has taken Congress Raichur Rural MLA Basanagouda Daddal, who is the Chairman of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, into its custody.

Sources said that Daddal was on his way to Raichur this morning when SIT sleuths summoned him to Bengaluru where he was taken into custody. The ED is also looking for Daddal. Sources told Star of Mysore this morning that Daddal is making desperate attempts to avoid arrest by the ED.

Daddal pleads before SIT

The Raichur Rural MLA reportedly pleaded with the SIT Investigating Officer (IO) to arrest him, fearing that the ED would arrest him if he left the premises. Daddal requested the IO to arrest him, stating that he could obtain bail if arrested, but not if taken into custody by the ED.

Daddal also sought the intervention of senior Congress leaders and Ministers to exert pressure on the IO. He pleaded with DySP B.S. Srinivas to arrest him, but senior officers decided there was no need for an arrest.

Despite this, Daddal insisted on staying at the SIT office. Sources added that the ED team is ready to take him into custody the moment he steps outside.

Rs. 14.5 crore seized

The SIT has arrested 11 people in connection with the scam including the senior officers of the Union Bank of India, Board officials, middlemen and associates of Nagendra and Daddal.  It has seized Rs. 14.5 crore of the allegedly embezzled money.

The ED has sought all the documents related to the scam from the SIT and the latter has not handed over the files to the ED despite repeated reminders for over 12 days. The ED has also seized significant documents and digital evidence regarding illegal fund transfers.

The CBI is also investigating the misappropriation case in the Board. In addition to residences of Nagendra and Daddal, the ED also raided the homes of three Union Bank staff members.