Allegations involving Rs 14.95 crore from the Dr B R Ambedkar Development Corporation have triggered a fresh political confrontation in Karnataka, after BJP leader R Ashoka accused the state government of failing to protect funds intended for Scheduled Caste development.
Ashoka, the Leader of Opposition in the Karnataka Assembly, made the allegations in a post on X on Friday. He referred to an Enforcement Directorate press release dated October 14 and alleged that money belonging to the corporation had been siphoned off through fake current accounts, forged documents and the premature closure of fixed deposits.
The ED, according to the press release shared by Ashoka, filed a supplementary prosecution complaint before the Special Court under the Prevention of Money Laundering Act in Bengaluru on October 5. The complaint names five accused, although the report supplied by Deccan Chronicle does not identify them.
The agency’s investigation was initiated on the basis of a First Information Report registered by the Central Bureau of Investigation’s Anti-Corruption Branch in Bengaluru. The FIR invokes provisions of the Indian Penal Code and the Prevention of Corruption Act, 1988, which are scheduled offences under the Prevention of Money Laundering Act, 2002, the ED said in the release.
Ashoka linked the case to the earlier controversy involving the Maharshi Valmiki Scheduled Tribes Development Corporation. He described that case as an alleged Rs 187-crore fraud and said the Ambedkar corporation matter represented another instance in which welfare funds had been diverted.
“Over Rs 14.95 crore belonging to the Dr B R Ambedkar Development Corporation (ADCL) was siphoned off through fake current accounts, forged documents, and premature closure of fixed deposits,” Ashoka alleged in his social media post. He also accused the Congress government in Karnataka of systematically misusing funds intended for the upliftment of Scheduled Castes and Scheduled Tribes.
The BJP leader demanded accountability and transparency, and directed his criticism at Congress leader Rahul Gandhi. He questioned why the Congress leadership had not responded to allegations that state treasury and Dalit welfare funds were being misused under its administration.
The report does not include a response from the Karnataka government or Congress leaders to Ashoka’s allegations. It also does not provide details of the alleged transactions, the value of assets involved in the prosecution complaint, or the next hearing before the special court.
The case places the financial controls of welfare corporations under renewed scrutiny. Such corporations administer public funds for targeted development programmes, making the maintenance of bank-account controls, documentation and fixed-deposit procedures central to accountability. In this instance, the ED’s prosecution complaint and the underlying CBI case will determine the formal legal process, while the political allegations remain subject to adjudication.
Ashoka said the BJP would continue pursuing the matter until those responsible were brought to justice and reiterated the party’s demand for full transparency. Further proceedings before the Special Court under the PMLA will establish how the alleged transactions were handled and who may be legally responsible.
