Bengaluru: Senior BJP leader B Sriramulu on Thursday alleged that the scamsters behind the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation had honey-trapped government and bank officials to embezzle funds.


The former minister claimed that luxury vehicles were acquired using money intended for tribal welfare. He also alleged that the laundered funds were used in various elections, including the Lok Sabha election.


"The scamsters bought a Lamborghini with Valmiki Corporation funds, laundered money through 'hawala' channels, and spent it on elections," Sriramulu stated at a press conference in Bengaluru.


Former Minister Narasimha Nayak (Raju Gowda) accused the state government of playing a dubious role in the scam.


"It is known that more than Rs 3 crore cannot be transferred without the Finance Secretary's approval, yet Rs 50 crore was moved in a single day. It is surprising that no one in the government was aware of this," Nayak remarked.


According to the BJP leader, the funds were transferred to the accounts of 16 business individuals, with amounts ranging from Rs 4.12 crore to Rs 5.98 crore.


Both BJP leaders called for the arrest of Congress MLA B Nagendra, who resigned as Tribal Welfare Minister after the scam was exposed.


The scam came to light when Accounts Superintendent Chandrasekharan P committed suicide on May 26, leaving a note claiming that Rs 187 crore had been illicitly transferred from the corporation. This included Rs 88.62 crore credited to various accounts of IT companies and a Hyderabad-based cooperative bank, according to official sources.


Following these revelations, the Congress government established a Special Investigation Team (SIT), which has so far arrested 11 individuals in connection with the case. The SIT has also questioned Nagendra and Corporation Chairperson Basanagouda Daddal.


Meanwhile, the Enforcement Directorate conducted raids on several locations in Karnataka, Andhra Pradesh, and Telangana on Wednesday, targeting sites allegedly linked to Nagendra and Daddal.