Bengaluru (Karnataka) [India], May 26 (ANI): The Directorate of Enforcement (ED), Bengaluru Zonal Office has provisionally attached immovable properties worth approximately Rs 26.27 crore (with a current market value of Rs 40 crore) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency said in a statement on Monday.

According to the ED statement, the assets belong to B K Nagarajappa, R Leelavathy, and other accused in a case related to the misappropriation of funds from the Karnataka Bhovi Development Corporation (KBDC).

https://x.com/dir_ed/status/1926935019798352374

'ED, Bengaluru Zonal Office has provisionally attached various immovable properties worth Rs. 26.27 Crore (approx.), (with current market value of Rs. 40 Crore) belonging to B K Nagarajappa, Ms. R Leelavathy and other accused, under the provisions of PMLA, 2002, in a case related to misappropriation of funds from Karnataka Bhovi Development Corporation (KBDC),' the ED said in a post on X.

ED investigation revealed that B K Nagarajappa, the then General Manager, KBDC and R Leelvathy, the then Managing Director, KBDC in connivance with middlemen and their associates, have misappropriated the funds from KBDC by sanctioning the loans/ subsidies/ financial assistance to the bank accounts of more than 750 fake beneficiaries, which were fraudulently opened by them, it said.

Later, the amounts so sanctioned from KBDC were diverted to the bank accounts of various entities viz. Adithya Enterprises, Somanatheswara Enterprises, New Dreams Enterprises, Harntiha Creations, Annika Enterprises, controlled by B K Nagarajappa and others, which was used in the purchase of properties, making payments to middlemen, and further diverted to bank accounts of individuals and various other entities, the agency said.

The money misappropriated from KBDC was mainly used to maintain their luxurious lifestyle and to acquire immovable and movable properties in their name, in the name of their family members. Earlier, the then General Manager of KBDC B K Nagarajappa and the then Managing Director of KBDC R Leelavathy were arrested u/s 19 of PMLA 2002 by the ED on April 05, 2025 and April 12, 2025 respectively and are currently under judicial custody, the ED said.

Further investigation is under progress, it added. (ANI)