BJP accuses Karnataka govt of financial fraud in Ambedkar Development Corporation
Bengaluru: BJP leader and Leader of the Opposition in the Karnataka Assembly, R. Ashoka, on Friday alleged financial irregularities in the Dr. B.R. Ambedkar Development Corporation (ADCL) by the state government, claiming that Rs 14.95 crore meant for the welfare of Scheduled Castes had been siphoned off through fake bank accounts, forged documents and premature closure of fixed deposits.
In a statement, Ashoka referred to the alleged scam in the Maharshi Valmiki Scheduled Tribes Development Corporation and alleged that the latest case exposed another instance of financial fraud under the Karnataka government.
Citing the Enforcement Directorate’s press release dated October 14, he alleged that funds belonging to the ADCL had been diverted through fraudulent transactions.
Questioning Leader of the Opposition in the Lok Sabha, Rahul Gandhi’s commitment to social justice, Ashoka asked whether such alleged financial irregularities were in line with the latter’s concept of ‘Nyay (justice)’.
“While Rahul Gandhi spoke about social justice at the national level, the Congress government in Karnataka was allegedly misusing funds intended for the welfare of Scheduled Castes and Scheduled Tribes,” Ashoka alleged.
He also questioned the silence of the Congress leadership over the alleged diversion of public money and funds earmarked for the welfare of marginalised communities.
Ashoka said the BJP would continue to demand accountability and transparency and would not rest until those involved in the alleged scams were brought to justice.
It can be noted that the ED, Bengaluru Zonal Office, filed a supplementary prosecution complaint against five accused people, including Ayub Sayyed and others, in connection with the alleged siphoning of Rs 14.95 crore belonging to the ADCL by using forged documents and impersonation.
The supplementary prosecution complaint was filed before the Special Court under the Prevention of Money Laundering Act (PMLA), Bengaluru, on October 5, the ED said in an official statement.
The ED initiated its investigation based on an FIR registered by the Central Bureau of Investigation’s Anti-Corruption Branch (CBI-ACB), Bengaluru, under various sections of the Indian Penal Code and the Prevention of Corruption Act, 1988. The offences are scheduled offences under the PMLA, 2002.
The investigation revealed that a fictitious current account in the name of ADCL was fraudulently opened at the State Bank of Mysore’s HAL II Stage Branch in Bengaluru using forged documents and impersonation.
Subsequently, four fixed deposits of Rs 5 crore each belonging to ADCL were prematurely closed using forged Term Deposit Receipt/Fixed Deposit Receipt (TDR/FDR) instruments and fabricated pre-closure letters. This allegedly resulted in the siphoning of Rs 14.95 crore, which constitutes proceeds of crime under the PMLA, the ED said.
Further investigation revealed that the proceeds of crime were allegedly routed through multiple bank accounts belonging to individuals and entities, followed by transfers and cash withdrawals to conceal the origin of the funds.
Statements recorded under Section 50 of the PMLA also indicated that the funds were knowingly received, transferred and withdrawn as part of the alleged money laundering process, according to the agency.
Earlier, the ED had filed a prosecution complaint before the Special Court in Bengaluru on March 25, 2026, against 15 accused persons and entities allegedly involved in the money laundering case. The agency had sought confiscation of assets worth Rs 6.02 crore belonging to the accused.
Further, on July 22, the ED issued a second Provisional Attachment Order, attaching an immovable property worth Rs 24 lakh belonging to one of the accused.