BENGALURU: The Enforcement Directorate (ED) has arrested the former general manager of the Karnataka Bhovi Development Corporation (KBDC) in connection with the diversion of Rs 97 crore of corporation funds. The scam allegedly took place during the financial year 2021-22. Over Rs 97 crore granted by the state government was allegedly misappropriated in the names of 500 beneficiaries.
According to a press release, BK Nagarajappa was arrested on Saturday. Before his arrest, on Friday the ED conducted raids at various locations across the city, including the KBDC head office at VV Tower and Nagarajappa’s residence, under the Prevention of Money Laundering Act (PMLA).
The release said Nagarajappa diverted funds from KBDC’s accounts to fake entities or beneficiaries, which were further transferred to his friends and family members. Several bank accounts were opened for transactions. Nagarajappa was produced before a special court, which remanded him to 14 days ED custody.