Lokayukta raids Ambedkar Development Corporation over alleged multi-crore scam

A major anti-corruption operation unfolded in Bengaluru on Monday as the Lokayukta Police conducted simultaneous searches at the Ambedkar Development Corporation (ADC) office and residences of several officials in connection with an alleged multi-crore scam. The raids, which began early in the morning at around 6:30 am, were carried out based on a complaint filed by Gururaj, who had served in the corporation between 2020 and 2023.

According to the complaint, large-scale irregularities took place in the sanctioning and distribution of loans meant for cooperative societies and cooperative banks under various welfare schemes. Acting on the allegations, the Lokayukta registered a case under the Prevention of Corruption Act (PC Act), 1988, and launched a full-fledged investigation.

Lokayukta SP Shivaprakash Devaraj confirmed that the initial investigation has revealed significant discrepancies in financial records, indicating that fake documents were created to show that loans had been released to eligible beneficiaries. “Our scrutiny of the records suggests that between Rs 3 crore and Rs 4 crore were misappropriated during the period under investigation,” the SP said.

He added that the sanctioned loans were allegedly diverted through fabricated beneficiary lists, manipulated approvals and falsified account details. The scam, according to preliminary findings, was executed systematically over three years, with each stage of loan processing reportedly compromised by internal collusion.

As part of the operation, Lokayukta teams raided five houses belonging to the accused officials as well as the main ADC office in Bengaluru. Searches are being carried out with court-issued search warrants, and investigators have already seized key documents related to the suspicious loan disbursals.

Officials said that while several primary records have been recovered, the teams are still searching for original documentation that could provide a clearer picture of the scale of corruption.

“We have secured documents related to transactions worth around Rs 3 crore so far. Considering the pattern of irregularities, there is a possibility of a larger scam,” a senior Lokayukta officer stated.