ED Seizes Properties of Ex-Minister in Valmiki Corporation Case

ED Attaches ₹8-Crore Properties of Former Karnataka Minister in Valmiki Corporation Probe

The Enforcement Directorate’s Bengaluru zonal office has provisionally attached immovable properties valued at approximately ₹8.07 crore belonging to former Karnataka minister and sitting MLA B Nagendra, as part of a widening money-laundering investigation linked to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. The action was taken under the Prevention of Money Laundering Act, following allegations that public funds meant for welfare programmes were misappropriated and diverted through a network of entities and individuals.

According to the agency, the attached assets include residential and commercial land and buildings held by Nagendra. The investigation stems from multiple FIRs registered by Karnataka Police and the Bank Securities & Fraud Branch of the CBI, which flagged suspicious transactions and alleged misuse of funds allocated to the Valmiki Corporation.

Officials said the probe has involved coordinated searches across Karnataka and other states, resulting in the arrest of six individuals, including Nagendra. A prosecution complaint was subsequently filed in September 2024 before a Bengaluru court against 25 accused persons and entities. The court took cognisance of the complaint the following month, allowing the agency to proceed with further action under the PMLA.

The ED noted that it had earlier attached movable and immovable properties worth ₹4.94 crore belonging to other accused in the same case. However, investigators said that despite extensive efforts, the specific proceeds of crime allegedly generated by Nagendra could not be fully traced. The agency believes the funds may have been exhausted or concealed, prompting it to attach properties of equivalent value to prevent frustration of ongoing proceedings.

Legal observers say the case reflects a recurring challenge in public-fund investigations: once money is layered through multiple transactions, recovery becomes difficult without early detection. They add that transparent accounting, segregation of duties and independent review mechanisms—principles commonly emphasised in professional auditing services in india—are critical in welfare-linked corporations where large sums are disbursed across districts and schemes.

With judicial proceedings now underway and assets provisionally secured, attention is expected to shift to whether further recoveries are possible and how accountability will be fixed within institutions handling funds meant for vulnerable communities.