Karnataka Valmiki Money Transfer 'Scam': ED Raids 'Unwarranted', Says D K Shivakumar

(MENAFN- Live Mint) On Wednesday, Karnataka Deputy Chief Minister D K Shivakumar criticised the Enforcement Directorate's raids in the Valmiki Development Corporation case, calling them unjustified.

The raids, allegedly linked to former Karnataka Minister B Nagendra and MLA Basanagouda Daddal for misappropriating funds, took place at multiple locations.

The raids were carried out in Bengaluru, Raichur, and Ballari, and they focused on an unauthorized transfer of ₹187 crore from the bank accounts of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.

According to official sources, ₹88.62 crore was allegedly illicitly credited to accounts associated with IT companies and a cooperative bank based in Hyderabad.

Speaking at the Nonavinakere Kadasiddeshwara mutt in the district, Shivakumar told reporters, "The state government's SIT is already probing the matter; there was no necessity for ED raids."

He emphasised that the banks can investigate such cases involving substantial sums of money. According to Shivakumar, the Enforcement Directorate's intervention was unnecessary.

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The illegal money transfer issue involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd came to light following the tragic suicide of its accounts superintendent, Chandrashekhar P, on May 26. In a note left behind, Chandrashekhar revealed the unauthorized transfer of ₹187 crore from the corporation's bank account. Notably, ₹88.62 crore of this amount was allegedly illicitly transferred to accounts linked to "well-known" IT companies and a cooperative bank based in Hyderabad. The corporation operates under the administrative control of Nagendra's department.

The state government has formed a Special Investigation Team (SIT) led by Manish Kharbikar, Additional Director General of Police for Economic Offences at the Criminal Investigation Department (CID), to investigate the matter.

Additionally, Union Bank of India, headquartered in Mumbai, lodged a complaint with the CBI regarding misappropriating funds from the corporation's MG Road branch. In response, the premier investigation agency launched an inquiry into the case.

-With agency inputs

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