Bengaluru, 17 July

The Enforcement Directorate (ED) on Wednesday questioned former minister B Nagendra's wife in connection with the Rs 187 crore scam in a State-owned corporation here. The ED sleuths summoned Manjula for interrogation in the alleged financial irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. Nagendra, a Congress MLA, is already in the ED custody.

The alleged illegal money transfer scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd came to light after its accounts superintendent, Chandrashekhar P, died by suicide on 26 May, leaving behind a note.

The note revealed the unauthorised transfer of Rs 187 crore belonging to the Corporation from its bank account, and said that out of the sum, Rs 88.62 crore was illegally moved to various accounts allegedly belonging to 'well-known' IT companies and a Hyderabad-based cooperative bank among others.

Scheduled Tribes Welfare Minister B Nagendra tendered his resignation on June 6 after allegations were made against him in connection with the scam. The ED, which joined the probe after the Union Bank of India lodged a complaint with the Central Bureau of Investigation, had previously raided Nagendra and Valmiki Corporation Chairman Basanagouda Daddal, who is Raichur Rural Congress MLA.