The Enforcement Directorate launched coordinated enforcement operations across eight locations in Karnataka on Wednesday, targeting properties and offices associated with prominent Congress leaders including Ballari Lok Sabha MP E Tukaram and several state legislators, according to official sources familiar with the investigation.

These latest enforcement actions represent an escalation in the ongoing investigation into suspected financial irregularities involving the Karnataka Valmiki Scheduled Tribes Development Corporation Limited. Federal investigators are examining allegations that substantial funds designated for tribal development programs were systematically diverted and subsequently channeled to support political campaign activities during recent Lok Sabha elections.

The current raids build upon earlier enforcement activities that began in July 2024, when the agency conducted extensive searches at approximately 20 locations spanning Karnataka, Andhra Pradesh, and Telangana. During that initial phase, investigators focused particularly on properties linked to Congress MLA Basanagouda Daddal, who served as chairman of the tribal development corporation and was central to the money laundering investigation.

The financial scandal first came to public attention following the tragic death of corporation accounts superintendent Chandrasekharan P on May 21, 2024. His final written statement contained explosive allegations detailing unauthorized fund transfers totaling Rs 187 crore from the corporation's accounts. According to these allegations, Rs 88.62 crore was illegally moved into various information technology company accounts and deposited in a cooperative banking institution located in Hyderabad.

The revelation of these alleged financial improprieties triggered swift administrative action within the state government. Two corporation officials faced immediate suspension pending investigation, while Karnataka's Tribal Welfare and Sports Minister Nagendra tendered his resignation from the cabinet position. Nagendra was subsequently taken into custody by enforcement officials as the investigation expanded to examine his potential involvement in the alleged financial misconduct.

Karnataka Home Minister G Parameshwara had previously addressed concerns about the federal investigation, stating that central enforcement agencies operate with statutory independence and that the state government was not embarrassed by their activities. He noted that a Special Investigation Team was also conducting parallel inquiries into the matter, demonstrating the multi-layered approach to examining the alleged irregularities.

The investigation continues to examine the complex web of financial transactions and political connections surrounding the alleged diversion of tribal development funds. Enforcement officials are working to trace the complete money trail and identify all individuals and entities that may have been involved in the suspected laundering scheme.

The case has significant implications for Karnataka's political landscape, particularly given the involvement of prominent Congress leaders and the timing of the alleged fund diversions in relation to electoral activities. The ongoing investigation represents part of broader federal efforts to combat corruption and ensure accountability in the utilization of funds designated for marginalized community development programs.

As the enforcement actions continue, authorities are expected to gather additional evidence and potentially expand the scope of their investigation based on findings from the latest searches. The case underscores ongoing concerns about the proper oversight and utilization of public funds intended for tribal welfare and development initiatives across the state.