06-Apr-2025 10:47 PM
6723
Bengaluru, Apr 6 (Reporter) The Directorate of Enforcement (ED), Bengaluru Zonal Office, has arrested BK Nagarajappa, former General Manager of the Karnataka Bhovi Development Corporation (KBDC), in connection with a Rs 97 crore money laundering case, officials said on Sunday.
According to an official press release, the arrest was made under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, following largescale search operations carried out on April four across multiple locations in Bengaluru. These included the KBDC office located at VV Tower and the residential premises of several accused and suspected persons.
The ED's action stems from multiple FIRs (first information reports) registered by the Karnataka Police, which alleged misuse and diversion of government funds meant for the Bhovi community, a Scheduled Caste group.
During the course of investigation, the ED found that Nagarajappa had played a key role in the misappropriation of funds. He allegedly diverted money from KBDC to accounts of fake beneficiaries with the help of agents from the Bhovi community.
The laundered funds were routed through entities floated in the names of his accomplices and eventually landed in the accounts of his friends and family members, officials said.
"Incriminating documents, digital records and details of properties acquired using the Proceeds of Crime (POC) have been seized during the search operations," the statement said.
The ED claimed that Nagarajappa had devised a "well-designed and fool-proof modus operandi" involving multiple fake bank accounts and fraudulent beneficiaries, effectively cheating several intended recipients of welfare benefits.
Based on the evidence collected, the ED concluded that Nagarajappa had generated and laundered proceeds of crime through systematic layering and integration using bogus entities.
He was produced before the special court in Bengaluru on April five, which granted 14-day custody to the Enforcement Directorate for further interrogation.
Further investigation is underway, the ED added...////...