Valmiki Corporation Money Laundering Case Widens to 31 Accused, Including Ex-Minister

A Bengaluru special court has ordered summons to six additional accused in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation money laundering case. The Enforcement Directorate's supplementary prosecution complaint identifies alleged financial transactions involving bullion, cooperative society accounts and private companies. Investigators flagged a ₹2 crore payment to Saranya Bullions without evidence of jewellery delivery and a ₹1.50 crore transfer to Paratopia E-Commerce. The latest proceedings expand the ED case to 31 accused, including former Karnataka minister B Nagendra.

ED Names Six More Accused in Valmiki Corporation Money Laundering Case

The Enforcement Directorate has filed a supplementary complaint against six more accused in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation scam, and a special court has ordered issuance of summons.

The investigation into the Valmiki Corporation scam has widened, with the Enforcement Directorate (ED) presenting additional evidence in a multi-crore money laundering case linked to the alleged diversion of funds from Karnataka’s Maharshi Valmiki Scheduled Tribes Development Corporation.

A special court in Bengaluru has taken cognisance of the supplementary prosecution complaint filed by the agency and related documents and issued summons to six more accused. The order was passed by Special Court Judge Shivaprasad KB, who is trying criminal cases against sitting and former MPs and MLAs.

The new accused named are Pittala Srinivasa, Gamini Chinna Raju, Velma Suresh, G Jagadeesh, Paratopia E-Commerce Pvt Ltd through its director Mukunga Moshillung Maring, and Mukunga Moshillung Maring. They have been named as accused no. 26 to 31, respectively.

The supplementary complaint and the supporting documents had prima facie enough material for proceeding against the six additional accused, Judge Shivaprasad KB said.

B Nagendra Among 25 Accused in ED Complaint

Special Court Judge Shivaprasad KB, who is hearing criminal cases against sitting and former MPs and MLAs, issued the order.

The names of the newly accused are Pittala Srinivasa, Gamini Chinna Raju, Velma Suresh, G Jagadeesh, Paratopia E-Commerce Pvt Ltd through its director Mukunga Moshillung Maring and Mukunga Moshillung Maring. They have been named as accused numbers 26 to 31, respectively.

Judge Shivaprasad KB said that the supplementary complaint and the documents in support had enough material prima facie to proceed against the six more accused.

The complaint also delved into an alleged transaction involving Saranya Bullions, owned by Gamini Chinna Raju, where Varma allegedly asked Chinna Raju to manufacture jewellery and issue an invoice in the name of his company, GN Industries.

Investigators, however, found no material to support that the jewellery was actually delivered. However, on 18th April, 2024, Rs 2 crore was transferred from Varma to Saranya Bullions. Chinna Raju allegedly failed to obtain customer KYC documents.

Also Read: Telegram Investment Trap: Kerala NRI Duped of ₹2.11 Crore in Fake Forex Scheme

Rs 45 Lakh Transaction and Commission Payments Examined

The ED complaint also named Velma Suresh, the 28th accused, in relation to some financial transactions. He allegedly needed around Rs 45 lakh of bank balance to get a United States visa for his son’s higher education.

Suresh is said to have raised funds through other sources and approached accused number 19, G Kishore Reddy, to convert cash. But investigators found no material to back the claimed conversion transaction.

The court papers said Rs 45 lakh was credited to Suresh’s bank account from the First Finance Credit Cooperative Society Ltd. The corporation scam, it alleged, was used to layer proceeds of crime in the society, with the account being maintained at Reddy’s instance.

Another accused, G Jagadeesh, is said to have handled cash flows for the main accused and received Rs 40 lakh as commission. He allegedly purchased a Toyota Innova worth Rs 38 lakh, and the payment was made from the bank account of Ram Karthik Projects, owned by accused number 13, Thamatam Teja.

Rs 1.50 Crore Transfer Linked to Paratopia E-Commerce

It was further stated in the complaint that Mukunga Moshillung Maring was the authorised signatory of a bank account maintained by accused no. 30, Paratopia E-Commerce Pvt Ltd.

The ED said that Rs 1.50 crore was credited to the company’s account from Zaliant Training and Consulting Services, which was allegedly used for siphoning off the corporation’s funds.

Out of this, Rs 1 crore was later transferred to accused number three, Etakari Sathyanarayana’s wife, Alladi Rajitha.

The supplemental complaint cites a number of alleged transactions involving cash transfers, financial layering, company accounts and purchases connected with the broader investigation.

The court’s decision to issue summons paves the way for proceedings against the other six accused to go ahead. Further judicial scrutiny will determine the strength of the evidence and the roles played by the individuals.

Sprouts News will continue to monitor the Valmiki Corporation scam, including the court hearings and the developments in the money laundering probe by the Enforcement Directorate.