The Enforcement Directorate (ED) arrested former state Minister and Congress leader B Nagendra on Friday night in connection with a money laundering investigation related to alleged irregularities of Rs 94.73 crore in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.

The four-time MLA will be produced before a special Prevention of Money Laundering Act (PMLA) court on Saturday, where the ED will request his remand for custodial interrogation.

Following questioning for over 13 hours, Nagendra was taken into custody at around 10:30 pm. He was brought to the ED office from his residence early in the morning, reports PTI.

The ED conducted raids in 20 locations across four states, including Karnataka, on Thursday and has seized approximately Rs 50 lakh in cash and some documents so far.

Following the allegations related to the scam, Nagendra, who was serving as the Scheduled Tribes Welfare Minister, resigned on June 6.

“I’m being brought from my home… I don’t know anything,” Nagendra reportedly said as he was being taken to the ED office in the morning.

The Enforcement Directorate (ED) has conducted searches for the last two days at various locations, including the residences of former Minister B. Nagendra and ruling Congress MLA Basanagouda Daddal, who is the chairman of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, PTI reported, citing sources.

The illegal money transfer issue within the Corporation surfaced after its accounts superintendent, Chandrasekharan P, committed suicide on May 26. He left a note revealing an unauthorized transfer of Rs 187 crore from the Corporation’s bank account, of which Rs 88.62 crore was illegally transferred to various accounts allegedly belonging to “well-known” IT companies and a Hyderabad-based cooperative bank, among others.

In his note, Chandrasekharan named the now-suspended Managing Director J.G. Padmanabh, Accounts Officer Parashuram G. Durugannavar, and Union Bank of India’s Chief Manager Suchismita Rawal. He also mentioned that a “minister” had given oral orders for transferring the funds.

In response, the state government formed a Special Investigation Team (SIT) led by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID), to conduct a thorough probe. The SIT questioned Nagendra and Daddal on Tuesday regarding the case, and Daddal appeared before the SIT again on Friday.

The Mumbai-headquartered Union Bank of India also filed a complaint with the Central Bureau of Investigation (CBI) concerning the embezzlement of funds belonging to the Corporation, specifically involving its MG Road branch. Consequently, the CBI has initiated an investigation.