ED crackdown on ‘funds misuse’ in poll, raids Congress lawmakers’ premises in Karnataka

In a crackdown on the alleged misuse of public funds during the recent Lok Sabha elections, the Enforcement Directorate (ED) on Wednesday carried out searches at the residences of senior Congress leaders in Karnataka -- including three sitting MLAs and a Member of Parliament.

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According to official sources, the probe agency conducted raids at eight locations — five in Ballari and three in Bengaluru—targeting the premises of Congress MLAs Nara Bharath Reddy, J N Ganesh and Dr NT Srinivas, and Ballari MP E Tukaram.

Officials said the search operation was part of a money laundering probe connected to Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL). Large sums of money from the corporation were allegedly siphoned off and later used for electioneering activities. Three of the leaders -- Reddy, Ganesh and MP E Tukaram -- were present at their respective houses during the raid.

According to sources, the ED suspects that funds meant for tribal welfare were diverted and used to distribute cash among voters and party workers during the 2024 Lok Sabha poll. The alleged irregularities have raised serious concerns about the misuse of state-run development funds for political gains.

According to the FIRs registered by the Karnataka Police and the CBI, funds worth crores of rupees were allegedly diverted from the accounts of the KMVSTDC and sent to “fake accounts” before being laundered through shell entities.

The corporation was established in 2006 with a primary focus on the socio-economic development of the Scheduled Tribe (ST) communities in Karnataka by running welfare schemes for them.

The ED has alleged that a part of cash siphoned from the Valmiki funds was used in the Bellary constituency during the 2024 Lok Sabha elections.