ED begins probe into Valmiki corporation scam 

ED begins probe into Valmiki corporation scam

The Directorate of Enforcement (ED) has begun probe into the alleged illegal diversion and laundering of money from the State-run Maharshi Valmiki Scheduled Tribes Development Corporation.

This will be the third agency probing the scam. Even as the State government has formed a Special Investigation Team (SIT) to probe the scam, the Central Bureau of Investigation (CBI) has also been probing the scam based on an FIR registered by Mumbai-headquartered Union Bank of India, alleging alleging embezzlement of funds to the tune of ₹88 crore.

The ED has till date recorded the statements of two key accused J. J. Padmanabh, managing director of the corporation when the alleged scam took place and Parashuram, an employee of the corporation, both presently lodged at the Central Prison at Parappana Agrahara here.

The scam came to light when the corporation’s accounts superintendent Chandrashekharan P. was found dead on May 26.

In a note, he alleged the illegal transfer of money from the corporation to various accounts. B. Nagendra, who held charge as the Minister for Scheduled Tribes Welfare, resigned over the allegations, on June 6.

Meanwhile, the ED raided 11 premises belonging to various builders and business firms in Bengaluru and Mysuru on Monday. However, ED officials refused to comment as to whether these raids were linked to the case or not.

Till date, a total of eight persons have been arrested and ₹14.5 crore has been recovered from various accused.

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