Karnataka: ED Raids 3 Congress Mlas, MP In Valmiki Scam Case Siddaramaiah Remarks, 'What Should I Do?'

(MENAFN- Live Mint) The Enforcement Directorate (ED) on Wednesday conducted raids at multiple locations linked to Congress Bellary MP E Tukaram and three Congress MLAs as part of a money laundering investigation connected to the alleged Valmiki scam, according to PTI report citing people who are familiar with the developments.

The ED searches were carried out at five sites in Bellary and three premises in Bengaluru under the provisions of the Prevention of Money Laundering Act (PMLA). These included residences belonging to Tukaram and MLAs Nara Bharath Reddy (Bellary City), J N Ganesh (Kampli), and N T Srinivas (Kudligi).

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The raids aim to collect evidence regarding allegations that funds siphoned from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC) accounts were diverted and subsequently used to finance election expenses.

Specifically, the misappropriated money is alleged to have been distributed as cash to voters and Congress workers during the 2024 Lok Sabha elections in the Ballari constituency.

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Karnataka Chief Minister Siddaramaiah on Wednesday said his government will not support any violation of the law, nor will come in the way of implementation of law.

"What should I do? The ED has conducted raids. Let them do whatever they want in accordance with the law. We will not support any violation of law. We will not come in the way of the implementation of the law. We won't obstruct it," Karnataka CM and Congress leader Siddaramaiah said in response to a question from reporters.

Also Read | Karnataka Valmiki Corp scam: State Minister B Nagendra to resign What is the Valmiki Scam case?

The Karnataka Valmiki case, also known as the Valmiki Corporation scam , involves the alleged misappropriation and money laundering of crores of rupees from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC). This corporation, established in 2006, aims at the socio-economic development of Scheduled Tribe communities in Karnataka by running welfare schemes for them.

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Funds worth approximately ₹89 crore were allegedly diverted from the KMVSTDC accounts into fake accounts and laundered through shell entities. About ₹21 crore of these funds were reportedly used to finance the 2024 Lok Sabha elections in the Bellary constituency.

How the Valmiki Scam Came to Light:

The irregularities surfaced after the accounts superintendent of the Valmiki Corporation, Chandrasekharan P, died by suicide in May 2024. He left behind a suicide note alleging pressure to facilitate unauthorised fund transfers exceeding ₹80 crore.

Investigations into Valmiki Scam Case

The Karnataka Police, Central Bureau of Investigation (CBI), and Enforcement Directorate (ED) are investigating the case under the Prevention of Money Laundering Act (PMLA). FIRs were registered based on the allegations of fund diversion and laundering.

Arrests and Searches:

Several Congress leaders, including Bellary MP E Tukaram and three Karnataka MLAs (NT Srinivas, NB Reddy, and JN Ganesh), have been raided by the ED. Former state minister B Nagendra has been named as a mastermind behind the scam and was arrested, though he was later granted bail due to lack of direct evidence of personal use of the funds.

Political Angle of Valmiki Scam Case:

BJP leader CN Ravikumar exposed the scam in 2024, accusing Congress leaders of withdrawing and misusing the KMVSTDC funds for election purposes. The ED alleges that a portion of the siphoned money was spent on the 2024 Lok Sabha elections in Bellary.

The Karnataka government has reportedly recovered ₹76 crore of the diverted funds.

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