Karnataka Corruption Crackdown: Luxury Financed by Fraud
The Enforcement Directorate has attached over Rs 26 crore in assets from two former Karnataka Bhovi Development Corporation officials, B K Nagarajappa and R Leelavathy, after investigating allegations of financial misconduct. The officials allegedly misappropriated funds meant for the welfare of the Bhovi scheduled caste, channeling money towards fake beneficiaries and personal gains.
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In a crackdown on financial malpractice, the Enforcement Directorate (ED) on Monday seized assets worth more than Rs 26 crore linked to two ex-officials of the Karnataka Bhovi Development Corporation (KBDC). The former officials, B K Nagarajappa and R Leelavathy, are under scrutiny for alleged money laundering.
The KBDC, responsible for the welfare of the Bhovi scheduled caste, found itself at the center of a scandal involving the misappropriation of funds. The ED contends that these officials misused their powers to redirect loans and subsidies to nonexistent beneficiaries, funneling the money into accounts linked to several associated enterprises.
Subsequent to their arrest, Nagarajappa and Leelavathy, now in judicial custody, face accusations of using diverted funds to purchase properties and sustain a lavish lifestyle. This investigation emerged following multiple FIRs filed by Karnataka Police uncovering fund misuse totaling Rs 97 crore.
(With inputs from agencies.)
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