The Enforcement Directorate on Wednesday conducted searches at multiple places allegedly linked to former Karnataka Minister B Nagendra and Congress MLA Basanagouda Daddal in connection with the illegal money transfer case involving a state-run corporation, the ED sources said.
The raids were carried out in Bengaluru, Raichur and Ballari as part of the probe into the alleged unauthorised transfer of Rs 187 crore belonging to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation from its bank accounts, sources said.
This includes Rs 88.62 crore illegally credited to various accounts of some IT companies and a Hyderabad-based cooperative bank, according to official sources.
The Congress MLA is the Corporation's Chairman. Nagendra resigned as the Scheduled Tribes Welfare Minister on June 6 following the allegations.
The alleged 'scam' came to light after the Accounts Superintendent of the Corporation, Chandrasekharan P, took his own life on May 26.
In the suicide note, Chandrasekharan alleged that there was an illegal transfer of Rs 187 crore belonging to the Corporation.
The Congress government thereafter constituted a Special Investigation Team (SIT), which has so far arrested 11 people in connection with the case.
The SIT questioned Nagendra and Daddal on Tuesday.
The CBI is also probing the case after the Union Bank of India lodged a complaint with it regarding the illegal transfer of money.
In Bengaluru, sleuths of the ED conducted raids in three places.
Sources said the ED conducted searches at some places in Hyderabad as well.
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