ED Attaches ₹5 Crore in Karnataka Corporation Scam

On August 28, 2025, the Enforcement Directorate applied the Prevention of Money Laundering Act to provisionally attach assets totaling ₹5 crore in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDCL) misappropriation case. The action followed after an employee’s suicide in May 2024 brought simmering corruption to light. That moment ignited investigations that exposed a lavish abuse of public trust.

Tracing Wealth

Authorities linked the substituted funds to forged documents and illicit bank transfers totaling ₹89.6 crore. The tainted money flowed through 18 fake accounts at a Hyderabad-based cooperative bank and landed partly in election coffers and luxury purchases. ED attached land and flats worth approximately ₹4.4 crore, tied to accused associates of ex-minister B. Nagendra, and froze ₹50 lakh held in a Hyderabad cooperative bank.

Investigation Unveils Political Currency

The scam hibernated at the intersection of greed and governance. Evidence suggests that siphoned funds funded the 2024 Lok Sabha elections and funded purchases of high-end assets like a Lamborghini. This scandal has already triggered high-profile raids, and the Karnataka High Court has transferred investigative control to the CBI to ensure powerful players don’t slip through legal gaps.

Congress leaders like MP E. Tukaram and three MLAs endured extensive raids, while former minister B. Nagendra faces charges as the alleged mastermind. The court has ordered ED and SIT to hand over all case documents to the CBI as the probe gains deeper layers.

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