The Enforcement Directorate on Friday took former Minister B Nagendra into custody, as part of a money-laundering probe linked to the alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, official sources said.

The Congress MLA was taken to the ED office here from his residence for questioning, the sources said.

Following allegations against him in connection with the scam, Nagendra, who was Scheduled Tribes Welfare Minister, tendered his resignation on June 6.

"I'm being brought from my home...I don't know anything," Nagendra told reporters as he was being taken to the ED office.

The ED has carried out searches for the last two days at several places, including at the premises of former Karnataka Minister Nagendra and ruling Congress MLA Basanagouda Daddal, who is Chairman of the Corporation.

The agency covered around 20 locations in Karnataka, Andhra Pradesh, Telangana and Maharashtra as part of a case registered under the Prevention of Money Laundering Act (PMLA), the sources said.

The illegal money transfer issue, involving the Corporation, came to the fore, after its accounts superintendent, Chandrasekharan P killed himself on May 26.

He left behind a note claiming unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account; from that, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to "well-known" IT companies and a Hyderabad-based cooperative bank among others.

Chandrasekharan has named the Corporation's now-suspended Managing Director J G Padmanabh, accounts officer Parashuram G Durugannavar and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that the "Minister" had issued oral orders for transferring the funds.

The state government has constituted an SIT headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID), to conduct the probe.

SIT had questioned Nagendra and Daddal on Tuesday in connection with the case.

Mumbai-headquartered Union Bank of India had also filed a complaint with the CBI in connection with embezzlement of money belonging to the Corporation involving its MG Road branch, following which the premier investigation agency had initiated a probe.

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