ED investigates homes of Karnataka Congress MP and three MLAs in Valmiki corporation fraud case.

The Enforcement Directorate (ED) on Wednesday carried out search operations at the residences of multiple Congress leaders linked to the alleged Karnataka Valmiki Scheduled Tribe Development Corporation (KMVSTDC) scam. Among those targeted were Bellary MP E Tukaram and MLAs NT Srinivas, NB Reddy, and JN Ganesh.

Previously, the ED had arrested former state minister B Nagendra in relation to the accused scam.

The ED, alongside the Central Bureau of Investigation (CBI), initiated an investigation following allegations from BJP leader and MLA CN Ravikumar. He claimed that Bellary MP E Tukaram misappropriated funds from KMVSTDC, reportedly using them in the 2024 Lok Sabha elections. The suspected amount is around ₹89 crore.
In 2014, the ED arrested former KMVSTDC managing director JG Padmanabha and Etakari Satyanarayana, chairman of First Finance Credit Co-Operative Society Limited. The Deccan Herald noted that they were instrumental in the misappropriation of funds by establishing multiple bank accounts to facilitate the transfer of stolen money.

The report also indicated that, according to the ED, the embezzled funds were used to purchase a large quantity of liquor just before the 2024 General Elections.

This alleged scam emerged after the corporation’s accounts superintendent, Chandrashekhar, tragically died by suicide on May 26, 2024, at his residence in Shivamogga.

Established in 2006, the corporation primarily aims to promote the socio-economic development of Scheduled Tribe (ST) communities in Karnataka by implementing various welfare schemes.