ED Raids Congress Leaders in Karnataka Valmiki Scam Case
ED Conducts Raids in Karnataka Valmiki Scam Case
The Enforcement Directorate (ED) has conducted raids at multiple locations linked to Congress leaders, including Bellary MP E Tukaram and three Congress MLAs, as part of a money laundering investigation into the alleged Valmiki scam.
Background of the Valmiki Scam
The Karnataka Valmiki scam, also known as the Valmiki Corporation scam, involves the alleged misappropriation and money laundering of crores of rupees from the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation (KMVSTDC). This corporation was established in 2006 to promote the socio-economic development of Scheduled Tribe communities in Karnataka.
Key Details of the Scam
Funds worth approximately ₹89 crore were allegedly diverted from the KMVSTDC accounts into fake accounts and laundered through shell entities. About ₹21 crore of these funds were reportedly used to finance the 2024 Lok Sabha elections in the Bellary constituency.
How the Scam Came to Light
The irregularities surfaced after the accounts superintendent of the Valmiki Corporation, Chandrasekharan P, died by suicide in May 2024. He left behind a suicide note alleging pressure to facilitate unauthorised fund transfers exceeding ₹80 crore.
Investigations and Raids
The ED searches were carried out at five sites in Bellary and three premises in Bengaluru under the provisions of the Prevention of Money Laundering Act (PMLA). The raids aim to collect evidence regarding allegations that funds siphoned from the KMVSTDC accounts were diverted and subsequently used to finance election expenses.
CM Siddaramaiah’s Response
Karnataka Chief Minister Siddaramaiah stated that his government will not support any violation of the law, nor will it come in the way of implementation of the law. ‘What should I do? The ED has conducted raids. Let them do whatever they want in accordance with the law.’
Possible Future Developments
The investigations into the Valmiki scam case are ongoing, with several Congress leaders facing scrutiny. The ED, Karnataka Police, and Central Bureau of Investigation (CBI) are working together to uncover the truth behind the alleged money laundering and fund diversion.
