BENGALURU: Enforcement Directorate, which is probing the alleged multi-crore scam in the Maharshi Valmiki Scheduled Tribes Development Corporation, on Wednesday stated that funds from the corporation were used to procure liquor during the recent Lok Sabha elections.
In a press release issued here, it said approximately Rs 90 crore was diverted to 18 fake bank accounts in Andhra Pradesh and Telangana from the corporation’s account.
The central agency said that it has recovered incriminating documents from the premises of former tribal welfare minister B Nagendra and Raichur Rural MLA Basavangoud Daddal, chairman of the corporation, linking them to handling the diverted funds.
Additionally, some high-end vehicles, including a Lamborghini, were purchased using the money transferred from the corporation. Associates of Nagendra were involved in diversion of funds.
ED officials arrested Nagendra under the Prevention of Money Laundering Act (PMLA) on July 5. He is now in ED’s custody.
Meanwhile, the ED officials on Wednesday picked up Nagendra’s wife Manjula from her residence in Dollars Colony for questioning in connection with the scam.