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BENGALURU: The Directorate of Enforcement (ED), Bengaluru zonal office, has provisionally attached four immovable properties worth around Rs 8.07 crore, of former minister B Nagendra, under provisions of the Prevention of Money Laundering Act (PMLA), 2002, in a case related to misappropriation and diversion of funds of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDCL).
“The seized assets include residential/commercial land and buildings,” the ED stated in an official release on Friday. 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/ diversion of funds from KMVSTDCL.
“Earlier, search operations were conducted under the provisions of PMLA at various locations across Karnataka and other states. Six persons, including Nagendra, were arrested. Thereafter, a Prosecution Complaint was filed before the Principal City Civil and Sessions Judge, Bengaluru, on September 9, 2024, against 25 accused persons/entities including Nagendra. The court had taken cognizance of the same on October 5 last year,” stated the central agency.
“Earlier, PAO number 22/2025 dated August 26, 2025, under Section 5(1) of PMLA was issued wherein movable and immovable properties of other accused worth Rs 4.94 crore were provisionally attached. All out efforts were taken to trace the Proceeds of Crime (POC) generated by Nagendra. However, the remaining POC could not be traced and it appears the same have been either exhausted or concealed by him. Therefore, ED is constrained to attach equivalent value of POC in the form of such properties (worth around Rs 8.07 crore) which otherwise may frustrate further proceedings under PMLA,” added the ED.