Karnataka’s Dr BR Ambedkar Development Corporation (ADCL) has come under scrutiny after the Enforcement Directorate alleged that forged documents, impersonation and premature closure of fixed deposits were used in a suspected diversion of funds. The allegations were cited by opposition leader R Ashoka, who accused the state government of siphoning off Rs 14.9 crore meant for Scheduled Caste welfare.
The allegations are contained in an Enforcement Directorate supplementary prosecution complaint filed against five accused before the special Prevention of Money Laundering Act court in Bengaluru on October 5, according to the report. The investigation followed a Central Bureau of Investigation first information report under the Indian Penal Code and the Prevention of Corruption Act.
According to the ED findings cited in the report, a fictitious ADCL account was opened at the State Bank of Mysore’s HAL II Stage branch. Four fixed deposits of Rs 5 crore each were allegedly closed before maturity using forged documents. The money was then routed through multiple bank accounts before being withdrawn in cash, the agency alleged.
The supplied report does not explain the difference between the Rs 14.9 crore fraud figure cited in its summary and the four fixed deposits, which together amount to Rs 20 crore. That discrepancy requires clarification from the investigating agency and the corporation before the exact amount allegedly diverted can be established.
The ED had earlier named 15 accused, sought confiscation of assets valued at Rs 6 crore and attached property worth Rs 24 lakh, the report said. The case places another state welfare corporation under scrutiny after the alleged irregularities involving the Maharshi Valmiki Scheduled Tribes Development Corporation.
Ashoka raised the ADCL allegations in a post on X and tagged Congress leader Rahul Gandhi. He alleged that funds intended for Dalit development had been laundered and demanded accountability from the state government. His statements are political allegations and have not, in the supplied material, been independently confirmed by the Karnataka government or ADCL.
The report also links the development to the earlier Valmiki corporation case, in which B Nagendra resigned as minister after being accused of involvement in an alleged Rs 90-crore scam. Nagendra had held the Scheduled Tribes welfare portfolio under Chief Minister Siddaramaiah and later served for a brief period under Deputy Chief Minister D K Shivakumar before resigning again.
The next steps in the ADCL matter will depend on proceedings before the special PMLA court and further responses from the Enforcement Directorate, the corporation and the Karnataka government. The exact scale of the alleged loss, the identities and roles of all accused, and whether public funds were ultimately recovered remain to be clarified.
