Arrested Karnataka ex-mantri ran tribal funds racket: ED

Former Congress minister B Nagendra (File photo/IANS)

Where is Daddal?

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.Sources said officials are looking for Congress MLA from Raichur Rural Basanagouda Daddal, who was questioned by the special investigation team on Friday.Officials had also grilled Pampanna, personal assistant of Daddal, for allegedly receiving Rs 50 lakh in April last week near the Slum Board in Seshadripuram and Rs 5 lakh in March in the city.It is learnt that Daddal, after leaving the CID headquarters on Palace Road, travelled to an undisclosed location with his family. In his villa at Kogilu near Yelahanka, only assistants were present. He is a close aide of Nagendra.Home minister G Parameshwara said he was told that Daddal is very much in the city. “After I heard about Nagendra’s arrest, I enquired about Daddal and I was told that he’s in the city with his family,” he said.Asked whether ED is probing allegations of using the scam money in the recent Lok Sabha elections, Parameshwara said: “I don’t know anything about that. Officials have not shared details with us. We cannot assume things on our own.”