Allegations of ₹14.95 Crore Fraud in Karnatakas Ambedkar Development Corporation Spark Political Controversy

Bengaluru, October 16 (Daily Kiran) : In Bengaluru, R. Ashok, the leader of the opposition in the Karnataka Assembly and a prominent BJP figure, has leveled serious allegations against the Congress-led state government. He claims that ₹14.95 crore designated for the welfare of Scheduled Castes has been misappropriated through fake bank accounts and fraudulent documents.

Ashok’s statement references a recent press release from the Enforcement Directorate (ED) dated October 14, which suggests that funds from the Ambedkar Development Corporation (ADCL) were allegedly diverted through bogus transactions. He raised questions about the commitment of Congress leader Rahul Gandhi to social justice, asking if such financial irregularities align with his vision of justice.

“Rahul Gandhi speaks about social justice at the national level, yet the Karnataka Congress government faces accusations of misusing funds meant for the welfare of Scheduled Castes and Scheduled Tribes,” Ashok stated. He also criticized the Congress leadership for their silence on the alleged embezzlement of public funds intended for marginalized communities. The BJP leader emphasized that his party will continue to demand accountability and transparency until those involved in the alleged fraud are brought to justice.

The ED’s Bengaluru zonal office has filed a supplementary prosecution complaint against five accused, including Ayub Syed, in connection with the alleged misappropriation of ₹14.95 crore from the Ambedkar Development Corporation. The agency revealed that fraudulent documents and identity fraud were employed in this scheme. The complaint was submitted to a special court under the Prevention of Money Laundering Act (PMLA) on October 5, following an investigation initiated based on an FIR registered by the Central Bureau of Investigation (CBI) in Bengaluru.

Investigations have uncovered that a fake current account was opened in the name of the Ambedkar Development Corporation at the HAL Second Stage branch of the State Bank of Mysore using forged documents. Subsequently, four fixed deposits of ₹5 crore each were allegedly closed prematurely by utilizing fake term deposit receipts and withdrawal letters. According to the ED, this process resulted in the embezzlement of ₹14.95 crore, which is considered proceeds of crime.

Further inquiries revealed that the money obtained from the alleged crime was transferred through various individuals and entities’ bank accounts. To obscure the original source of the funds, transfers and cash withdrawals were executed. Statements recorded under Section 50 of the PMLA indicated that the funds were deliberately obtained, transferred, and withdrawn as part of a money laundering scheme.

Earlier, on March 25, 2026, the ED had filed a prosecution complaint against 15 accused individuals and entities linked to this money laundering case in a special court in Bengaluru. The agency sought the seizure of properties worth ₹6.02 crore from the accused. Additionally, on July 22, the ED issued a second provisional attachment order, seizing real estate valued at ₹24 lakh from one of the accused.