Valmiki Fund Scam: Big action by ED against former Karnataka minister B Nagendra:The ED arrested former Karnataka minister B. Nagendra on Friday. The ED has taken this action as part of the money laundering investigation related to alleged irregularities in Maharishi Valmiki Scheduled Tribe Development Corporation Limited. The ED conducted raids in four states including Karnataka on Thursday in this case and has so far seized about Rs 50 lakh in cash and some documents.

Bengaluru: The ED on Friday arrested former Karnataka minister B. Nagendra as part of its money laundering probe into alleged irregularities in the Maharishi Valmiki Scheduled Tribes Development Corporation Limited.Sources said Nagendra was taken to the ED office from his residence on Friday morning. He was arrested at the agency's office around 10.30 pm after questioning him for more than 13 hours. He will be produced before a special court on Saturday, where the ED will seek his remand for custodial interrogation.

ED conducted raids in four states

The ED conducted raids in four states including Karnataka on Thursday in this case and has so far seized about Rs 50 lakh in cash and some documents. Nagendra resigned from his post on June 6 after allegations were leveled against him in connection with this scam.

The case of illegal fund transfer involving the corporation came to light after Accounts Superintendent Chandrasekaran committed suicide on May 26. Chandrasekaran claimed in the suicide note that Rs 187 crore was transferred from the corporation's bank account unauthorisedly.

Chandrasekaran has named the corporation's now suspended managing director JG Padmanabha, accounting officer Parashuram G. Durugannavar and Union Bank of India chief manager Suchismita Raval in the note. Chandrasekaran wrote in the note that the "minister" had given verbal orders to transfer the money.