ED Conducts Raids on Congress MP and MLAs in Karnataka Over Fund Misappropriation

Enforcement Directorate's Investigative Actions

On Wednesday, the Enforcement Directorate initiated searches at various locations associated with Congress MP E Tukaram from Ballari and three other MLAs in Karnataka. This action is part of an investigation into alleged financial irregularities involving the Maharshi Valmiki Scheduled Tribes Development Corporation.

Authorities targeted five sites in Ballari and three in Bengaluru linked to Tukaram and the MLAs—Nara Bharath Reddy, JN Ganesh, and NT Srinivas—under the Prevention of Money Laundering Act, according to reports from unnamed officials.

Karnataka's Chief Minister, Siddaramaiah, commented on the situation, asserting that the state government would not interfere with legal processes. He stated, “Let them proceed as per the law… We will not obstruct it.”

The investigation centers around allegations of misappropriated funds from the Maharshi Valmiki Scheduled Tribes Development Corporation. The issue surfaced in May 2024 following the tragic suicide of the corporation's accounts superintendent, Chandrashekhar, who left a note claiming that Rs 187 crore had been illicitly transferred from the corporation's accounts.

A Special Investigation Team formed by the Karnataka government is currently probing the fund misappropriation claims. So far, 14 individuals have been arrested, including two officials from the corporation: managing director Padmanabha GJ and accounts officer Parashuram Dugganavar.

Furthermore, the Enforcement Directorate has alleged that Rs 20.19 crore of the misappropriated funds were utilized to finance Tukaram's electoral campaign in the Ballari constituency during the 2024 Lok Sabha elections.