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ED arrests ex-GM of Karnataka Bhovi Development Corp in money laundering case
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....D arrests ex-GM of Karnataka Bhovi Development Corp in money laundering case<BR>PTI News<BR>Dated:- 6-4-2025<BR>PTI<BR>New Delhi, Apr 6 (PTI) The Enforcement Directorate on Sunday said it has arrested a former general manager of the Karnataka Bhovi Development Corporation (KBDC) following searches in a money laundering case related to alleged irregularities in the department. B K Nagarajappa was ....
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....taken into custody on April 5. A special Prevention of Money Laundering Act (PMLA) court in Bengaluru sent him to ED custody for 14 days, the federal probe agency said in a statement. The money laundering case stems from multiple Karnataka Police FIRs filed on charges of "misuse and diversion" of funds worth Rs 97 crore from the KBDC, meant for the welfare of the Bhovi community, which is include....
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....d in Karnataka's Scheduled Castes list. The ED conducted searches against various accused in the case on April 4 and at the office of KBDC located at V V Tower in Bengaluru. It alleged that Nagarajappa was "instrumental" in the diversion of funds from the KBDC by using bank accounts of "fake" beneficiaries provided by agents from the Bhovi community. "Funds were further layered and laundered th....
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....rough entities incorporated in the name of his accomplices in connivance with other suspects/accused," the agency claimed. Nagarajappa's legal representative could not be contacted for a response on the charges against him. The accused, according to the ED, managed to "divert" funds from KBDC accounts to those of fake entities and beneficiaries and they were further transferred to friends and fa....
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....mily members of the accused. Several bank accounts were opened and many beneficiaries or intended beneficiaries were cheated by adopting a very well-designed and foolproof modus operandi by Nagarajappa and other co-accused, the ED claimed. The former GM generated "proceeds of crime" and layered the same using fake accounts and integrated the funds in the bank accounts of their friends and family....
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.... members through bogus entities created for this purpose, the agency's probe found. The ED seized documents, digital records and details of properties during the raids. PTI NES DIV DIV<BR> News - Press release - PIB....