BENGALURU: Former Congress minister B Nagendra orchestrated the scam in Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, where funds up to Rs 94 crore were embezzled, ED said in its remand application. “On his directions, the accounts of the corporation were transferred from Vasant Nagar branch of Union Bank of India to its MG Road branch.
Nagendra held meetings with officials and others at a hotel to pressure them to illegally divert the money,” the application said. Arrested by ED late Friday night, Nagendra was produced before a special judge for elected representatives Saturday, and remanded in six-day custody.
The arrest followed a two-day search at multiple locations linked to Nagendra. He had resigned as tribal welfare minister in June after one of his aides was linked to the tribal welfare fund scam. About Rs 94 crore was allegedly transferred during Feb-May from corporation’s bank accounts to multiple mule accounts opened using stolen identities. Officials are now looking for Nagendra’s close associate and Congress MLA from Raichur Rural, Basanagouda Daddal, whom a SIT had subjected to questioning on Friday. Officials had also grilled his personal assistant Pampanna for allegedly receiving Rs 50 lakh in April last week and Rs 5 lakh in March.