BENGALURU: The Directorate of Enforcement (ED) has provisionally attached immovable properties worth Rs 26.27 crore (current market value of Rs 40 crore) of BK Nagarajappa, R Leelavathy and other accused under the Prevention of Money Laundering Act (PMLA), 2002, in a case related to misappropriation of funds at the Karnataka Bhovi Development Corporation (KBDC).
In an official release on Monday, the ED said the investigation revealed that Nagarajappa, who was then general manager, and Leelavathy, then managing director, of KBDC, in connivance with middlemen and their associates, misappropriated funds by sanctioning loans/subsidies/financial assistance to the bank accounts of more than 750 fake beneficiaries, which were fraudulently opened by them.
“Later, the amounts so sanctioned from KBDC were diverted to the bank accounts of various entities controlled by Nagarajappa and others, which was used in purchase of properties, making payments to middlemen and diverted to bank accounts of individuals and various other entities,” it added.