New delhi, 8 July

The Enforcement Directorate (ED) on Tuesday said it has handed over assets worth more than Rs 3.82 crore to the Karnataka State Waqf Board following a money laundering investigation into a case of alleged fraud against the body.

The case stems from a state police FIR filed against two Vijaya Bank officials and a man named Syed Siraj Ahmed, a first division assistant with the Waqf Board.

The Waqf Board issued two cheques for a total amount of Rs 4,00,45,465 to open fixed deposit accounts in the Vijaya Bank. However, instead of opening the accounts, the money was "siphoned off" by transferring to fictitious entities, the federal agency said in a statement.

It was found that Rs 4 crore was transferred to the account of a company named Verkeys Realities, which spent Rs 1.10 crore for purchasing a Mercedes car while Rs 2,72,74,444 was transferred to another account.

The agency then attached assets worth more than Rs 3.82 crore in 2017 as part of this investigation and in March that year, filed a chargesheet against six individuals and entities including Verkeys Realities.