Daijiworld Media Network - Bengaluru
Bengaluru, April 6: In a significant development in the Karnataka Bhovi Development Corporation (KBDC) scam, sleuths from the Directorate of Enforcement (ED), Bengaluru Zonal Office, conducted extensive searches and seized crucial digital records and property details in connection with the alleged diversion of government funds amounting toRs97 crore.
The raids were carried out on Friday, April 5, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at multiple locations across Bengaluru. The search operations included the KBDC office situated at V V Tower and residences of several individuals, including former Corporation officials who are under the scanner.
Sources in the ED confirmed that theRs97 crore, meant for employment generation among the marginalised Bhovi community, was allegedly siphoned off by creating over 500 fictitious beneficiary accounts. The investigators suspect a complex network of fraudulent disbursements involving senior officials.
Acting on multiple FIRs filed by the Karnataka Police, the ED launched the probe to unravel the money trail and track the assets acquired using the suspected Proceeds of Crime (PoC). The agency is now meticulously examining the digital evidence and property documents collected during the searches.
The ED’s involvement followed preliminary findings by the Karnataka Lokayukta, which stumbled upon evidence pointing to possible money laundering while probing a separate complaint.
Adding another twist to the case, it was revealed that in December 2024, a mobile phone believed to contain vital information related to the scam was snatched from KBDC’s general manager at Kunigal Circle while he was waiting at a bus stop. A complaint in this regard was lodged at the Nelamangala Town police station.
The KBDC has been embroiled in controversy over fraudulent loan distribution, unauthorised fund transfers, and alleged negligence in document management. Reports indicate that more than 200 files, containing sensitive data on fund beneficiaries, have mysteriously disappeared.
Established in 2016, the Karnataka Bhovi Development Corporation was formed with the objective of uplifting the Bhovi community, a Scheduled Caste group traditionally engaged in manual labour like stone quarrying, pond cleaning, and construction. The Corporation was envisioned to support the socio-economic advancement of Bhovi families, particularly those living below the poverty line.
With investigations intensifying, the ED is expected to summon key suspects for questioning in the coming days as the agency seeks to bring to light the full extent of the alleged financial misconduct.