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The 54-year-old Bellary Rural MLA appeared before the agency and his statement was recorded under the Prevention of Money Laundering Act (PMLA), the ED officials said.

Reciprocating, Nagendra too said Shivakumar backed him from the Congress Legislature Party to Delhi and did not want him to resign.

According to the reports, Nagendra had told Shivakumar that he did not want to embarrass the party leadership further and intended to voluntarily resign by Wednesday evening.

The CBI probe unearthed a meticulously planned conspiracy involving Nagendra, his close associate Nekkanti Nagaraj and Padmanabha JG, MD of KMVSTDCL.

ED initiated investigation on the basis of various FIRs registered by Karnataka police and Bank Securities & Fraud Branch (BS&FB), CBI, Bengaluru, in connection with offences related to misuse/ divers ...