Karnataka: ED Seizes Digital Records and Property Details in KBDC Fraud
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Synopsis
On April 6, 2024, the ED seized digital records and property details from the KBDC amid an investigation into the alleged diversion of Rs 97 crore intended for the Bhovi community's upliftment. The operation revealed fraudulent beneficiary accounts and raised questions about KBDC officials' involvement in money laundering.
Key Takeaways
- ED seized digital records and property details.
- Alleged diversion of Rs 97 crore from KBDC.
- Fake beneficiaries created by officials.
- Investigation initiated after Karnataka Lokayukta's findings.
- KBDC aims to uplift the Bhovi community.
Bengaluru, April 6 (NationPress) Officials from the Directorate of Enforcement (ED), Bengaluru Zonal Office, confiscated digital records and property details during searches at the Karnataka Bhovi Development Corporation (KBDC) in connection with the alleged misappropriation of Rs 97 crore in government funds, an official reported on Sunday.
This alleged misappropriation of Rs 97 crore—designated for the Corporation by the Karnataka government to create employment opportunities for the marginalized Bhovi community—was executed through the establishment of fraudulent 500 beneficiary accounts, as per investigators.
The searches, conducted on Friday under the Prevention of Money Laundering Act (PMLA), 2002, took place simultaneously at various locations throughout Bengaluru, including KBDC's office at V V Tower and the residences of the accused, which include former officials of the Corporation.
During the operation, ED officials gathered digital records and information about properties obtained through the Proceeds of Crime (PoC) associated with money laundering.
The ED's investigation into the scam was initiated following multiple FIRs filed by Karnataka Police regarding the alleged misuse and diversion of Rs 97 crore from KBDC.
ED investigators are working to trace the financial trail to unravel the complex network of fake beneficiaries created by the accused, including senior officials of the Corporation.
The ED took over the investigation after the Karnataka Lokayukta uncovered evidence suggesting alleged money laundering while examining a complaint.
In December 2024, a mobile device containing vital details about the accused was reported stolen, prompting KBDC's general manager to file a complaint at Nelamangala Town police station.
The phone was reportedly snatched from the general manager while he awaited a bus at Kunigal Circle, as stated in the complaint.
The Corporation has faced scrutiny due to fraudulent loan disbursements, improper transfers, and negligence in safeguarding crucial documents.
KBDC officials are also under investigation for the alleged disappearance of over 200 official files that contained information about beneficiaries of government funds.
Founded in 2016, the KBDC's mission is to uplift the Scheduled Caste Bhovi community, particularly those living below the poverty line, through various schemes aimed at social and economic advancement.
The Bhovi community, traditionally involved in manual labor such as stone breaking, pond maintenance, and construction, encounters significant barriers in accessing resources and opportunities.
