ED tried to destabilise Congress government in Karnataka through me: B Nagendra after release on bail

He also charged the ED (Directorate of Enforcement) with arresting him under pressure from the BJP as part of a conspiracy to destabilise the Congress government.

Congress MLA B Nagendra on Wednesday was released from the Parappana Agrahara Central Jail in Bengaluru after he was granted bail in connection with the alleged multi-crore scam in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd (KMVSTDCL).

The former Karnataka ST Welfare minister, arrested by the Enforcement Directorate (ED) in July, was granted bail by the special court for cases involving elected representatives in Bengaluru on Monday.

Speaking to reporters following his release, Nagendra said that the ED harassed him for three months.

“Even though I have no role in this scam, I was arrested,” the Bellary Rural MLA said. “With pressure from the BJP’s central leaders, the ED, through me, has tried to destabilise the government in Karnataka. The BJP is conspiring to destabilise the state government by any means.”

ED on September 9 filed the chargesheet, or the prosecution complaint in money laundering cases, terming Nagendra the “mastermind” in the scam. The ED had claimed that Rs 20.19 crore of the funds misappropriated from KMVSTDCL was diverted to Ballari during the 2024 Lok Sabha elections in May.

“ED investigation revealed that under the influence of Nagendra, the account of the corporation was moved to the MG Road Branch without any proper authorisation, where Rs 187 crore, including Rs 43.33 crore from the State Treasury under the Ganga Kalyana Scheme, were deposited without following proper procedures and in violation of government guidelines,” the ED claimed.

“These funds were subsequently siphoned off through multiple shell accounts and converted into cash and bullion. ED investigation also revealed that an amount of Rs. 20.19 Crore of the diverted funds was used to support a candidate contesting the 2024 Lok Sabha election from the Bellary constituency, as well as for the personal expenses of B Nagendra,” it added.

The ED said that the evidence of this expenditure was discovered during search and seizure operations and corroborated by financial analysis and statements.

While the ED chargesheet directly implicated Nagendra, the chargesheet filed in August by the Special Investigation Team (SIT) of the Karnataka police made no mention of the Congress MLA.