Bengaluru: Former GM of KBDC Arrested by ED for Rs. 97 Crore Scam:

Bengaluru: Former GM of KBDC Arrested by ED for Rs. 97 Crore Scam The Enforcement Directorate (ED), Bengaluru, has arrested B K Nagarajappa, former GM of Karnataka Bhovi Development Corporation (KBDC), in a Rs. 97 crore money laundering case. ED in Bengaluru performed search operations on April 4, 2025, under the Prevention of Money Laundering Act (PMLA), 2002. The search was done across various locations in Bengaluru, including the office of the Karnataka Bhovi Development Corporation (KBDC). He is accused of diverting funds from KBDC using bank accounts created in the names of fake beneficiaries, many of whom belonged to the Bhovi community. The money was later transferred to associates, family members and friends. According to the ED, this scam involved multiple layers of transactions to cover up the source of the money. Several new bank accounts were opened, and the beneficiaries were cheated. He was arrested on May 5 under the Prevention of Money Laundering Act (PMLA), 2002, and has been placed under 14 days ED custody. The investigation is still ongoing. ED started its investigation based on several FIRs filed by the Karnataka Police that were related to the misuse and diversion of Rs. 97 crore from the Karnataka Bhovi Development Corporation (KBDC). Refer to the Press Release for more information