In a significant development, the Enforcement Directorate (ED) has arrested B K Nagarajappa, the former general manager of the Karnataka Bhovi Development Corporation (KBDC), in connection with an ongoing investigation into a massive Rs97 crore financial fraud. The arrest follows an in-depth probe revealing irregularities with funds allocated for the welfare of the Bhovi community.
Nagarajappa was taken into custody after searches uncovered substantial misuse and diversion of funds. A special PMLA court in Bengaluru has granted the ED a 14-day custody of the accused, enabling further investigation. The fraud was initially flagged by FIRs filed by Karnataka Police, which highlighted the mismanagement and diversion of these funds.
According to the ED, Nagarajappa was central to the scheme, channeling funds through fake accounts in collaboration with accomplices. As the investigation deepens, authorities have seized several key documents, digital records, and property details, implicating the former general manager in a well-organized financial fraud operation.
