Bengaluru: The Enforcement Directorate (ED) on Thursday questioned Congress MLA Basanagouda Daddal in connection with the misappropriation of funds at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.
In a separate development, a special court remanded former Congress minister and MLA B Nagendra in the ED's custody for five more days in the same case.
Daddal, the corporation’s chairman, arrived at the ED’s office in Shanthinagar on Thursday morning and was questioned for hours.
The ED had said that during the recent raids on the premises of Nagendra and Daddal, its investigators found "incriminating" documents linking them to the handling of diverted funds during recent general elections.
"Incriminating evidence related to the handling of these illicit funds was also discovered at the residence of the corporation's chairman, Basanagouda Daddal," the agency said on Wednesday.
Separate probes into the alleged irregularities are being carried out by the Central Bureau of Investigation (CBI) and the Special Investigation Team (SIT) formed by the Congress-led Karnataka government.
During the custody hearing of Nagendra, Special Public Prosecutor (SPP) P Prasanna Kumar, appearing for the central agency, told the court that the ED had found that three mobile phones were destroyed.
Kumar also submitted that Nagendra had recently purchased some properties and the ED needed his further custody to ascertain whether they were bought using the Rs 89.62 crore misappropriated from the corporation.
The court was also informed of the ED’s findings that a substantial amount of the misappropriated sum was used to purchase large quantities of liquor just before the recent Lok Sabha polls.
The funds were wired to a company in Hyderabad, the court was told, which supplied the liquor in March 2024. The ED also found that part of the funds were used to print the guarantee cards distributed during the campaigning.
SPP Kumar rebutted the defence’s claims that Nagendra was being "pressured" and told the court that interrogations were being "videographed" to maintain transparency.
"The custody was sought for eight more days," Kumar told DH.
After hearing the arguments, the judge passed an order extending the former minister's custody till July 22.