Bengaluru, 13 July

Home Minister G Parameshwara on Saturday said central agencies like the Central Bureau of Investigation (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 the Scheduled Tribes Welfare Minister, had tendered his resignation on 6 June.

"I have said that ED is probing him (Nagendra), based on the information they get, they will take action. 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.

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 illegal money transfer issue involving the Corporation, came to the fore after its accounts superintendent, Chandrasekharan P died by suicide on 26 May.

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. PTI