Directorate of Enforcement (ED), Bengaluru Zonal Office has filed Prosecution Complaint
(PC) against three accused, Ms. R Leelavathy, B K Nagarajappa and P D Subbappa in the
investigation related to misappropriation of funds from Karnataka Bhovi Development Corporation
(KBDC)] under the provisions of the PMLA, 2002 before the Hon’ble Special Court (PMLA) on
03.06.2025.
The investigation which was initiated by ED on the basis of various FIRs registered by
Karnataka Police, revealed that B K Nagarajappa, the then General Manager of KBDC and Ms. R
Leelavathy, the then Managing Director of KBDC and others in connivance with middlemen and
their associates, have misappropriated the funds from KBDC and the same was diverted to the
bank accounts of various bogus entities viz. Adithya Enterprises, Somanatheswara Enterprises,
New Dreams Enterprises, Harntiha Creations, Annika Enterprises controlled/operated by B K
Nagarajappa and others.
Search and seizure operations under the provisions of PMLA, 2002 was carried on
04.04.2025 at various locations across Bengaluru, including the office of Karnataka Bhovi
Development Corporation (KBDC) located at V V Tower, Bengaluru and residential premises of
accused/suspected persons.
Thereafter, B K Nagarajappa as well as R Leelavathy were arrested u/s 19 of the PMLA,
2002 on 05.05.2025 and 12.05.2025, respectively and they were remanded to ED custody for 14
days and 7 days respectively. Currently both of them are lodged in judicial custody.
The Proceeds of Crime (POC)so generated was used in purchase of properties, making
payments to middlemen and further diverted to bank accounts of individuals and various other
entities.
Earlier, in this case ED had provisionally attached various immovable properties worth Rs.
26.27 Crore (approx.), (having market value of Rs. 40 Crore) belonging to B K Nagarajappa, Ms. R
Leelavathy and other accused involved in Money Laundering.
Further investigation is under progress.
