The ED has earlier arrested former state minister B Nagendra in connection with the alleged scam.
The ED and the Central Bureau of Investigation (CBI) started an investigation after BJP leader and MLA CN Ravikumar alleged that Bellary MP E Tukaram withdrew money from KMVSTDC funds and spent it in the 2024 Lok Sabha elections. The amount is believed to be around ₹89 crore.
In 2014, the ED arrested former managing director of KMVSTDC JG Padmanabha and Etakari Satyanarayana, the chairman of First Finance Credit Co-Operative Society Limited. The Deccan Herald reported that the duo played a “crucial” role in funds misappropriation by opening numerous bank accounts to transfer the stolen money.
The report added that as per the ED, the misappropriated funds were used to purchase a significant quantity of liquor just before the 2024 General Elections.
The alleged scam came to light after the corporation’s accounts superintendent, Chandrashekhar, died by suicide on May 26, 2024, at his Shivamogga residence.
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.
(Edited by : Priyanka Rathi)
First Published: Jun 11, 2025 9:33 AM IST
