CBI, ED should not become 'political weapons': Karnataka Home Minister on Nagendra arrest

G Parameshwara's comment come a day after the ED on Friday arrested former minister B Nagendra in connection with a money laundering probe linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.

Bengaluru: Karnataka Home Minister G Parameshwara on Saturday said central agencies like the CBI and Enforcement Directorate (ED) should not become 'political weapons'.

His comments come a day after the ED on Friday arrested former minister B Nagendra in connection with a money laundering probe linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited.

Following allegations against him in connection with the scam, Nagendra, who was Scheduled Tribes Welfare Minister, had tendered his resignation on June 6.

"I have said that ED is probing him (Nagendra), based on the information they get, they will take action. Now he has been arrested. Based on the information they have, he has been arrested. These procedures happen in accordance with the law, but this should not be used politically," Parameshwara said.

Addressing reporters here, he said central agencies like CBI, ED should not become political weapons.

The ED had earlier this week carried out searches at several places, including at the premises of Nagendra, and ruling Congress MLA Basanagouda Daddal, who is Chairman of the Corporation.

The agency covered around 20 locations in Karnataka, Andhra Pradesh, Telangana and Maharashtra as part of a case registered under the Prevention of Money Laundering Act (PMLA), the sources said.

Asked whether he felt Narendra's arrest was politically motivated, by using ED, Parameshwara said, "we don't have any objection to the probe... we too had constituted a Special Investigation Team (SIT). SIT has recorded statements from Nagendra and Daddal, their investigation too is on."

The CBI probe is based on a complaint from the bank, he said. "Now all of a sudden ED has entered the picture. They might have information, I don't want to dispute that. But our stand since the beginning is that ED and CBI should not become political weapons."

To a question on ED probing into the allegations that the corporation's funds were used for elections, the Home Minister said, "I'm not aware of it. ED has not shared any information with the police, so it won't be right to speculate." The illegal money transfer issue involving the Corporation, came to the fore after its accounts superintendent, Chandrasekharan P died by suicide on May 26.

He left behind a note claiming unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account. Funds to the tune of Rs 88.62 crore were illegally moved to various accounts allegedly belonging to "well-known" IT companies and a Hyderabad-based cooperative bank among others.

The state government has constituted an SIT headed by Manish Kharbikar, Additional Director General of Police, Economic Offences, at the Criminal Investigation Department (CID), to conduct the probe.

Nagendra and Daddal have been questioned by the SIT in connection with the case.

Mumbai-headquartered Union Bank of India had also filed a complaint with the CBI in connection with embezzlement of money belonging to the Corporation involving its MG Road branch, following which the premier investigation agency had initiated a probe.

To another query regarding BJP accusing the Congress government of scuttling the opposition's right to protest against MUDA 'scam' using police force, the Home Minister said, "We don't have any objection to protests, but it cannot be done however they want, on the streets by causing inconvenience to the public." The Supreme Court has already said that there should not be any inconvenience to the public and there should not be any destruction to public property, he said. "There is a SC direction in this regard, keeping the directives in mind protests should be held. The Legislature session is beginning from Monday, where the opposition can raise issues."