Pramesh S Jain
The Directorate of Enforcement (ED),Bengaluru Zonal Office on Saturday arrested R.Leelavathy,former Managing Director of Karnataka Bhovi Development Corporation (KBDC),under the provisions of the Prevention of Money Laundering Act .
According to official release,the investigation found that Leelavathy was found involved in the offense of money laundering by creating fake accounts to transfer the funds for personal gain .
She was produced before the PMLA Court and granted ED custody for seven days.
Earlier,the ED conducted search operations at various locations across Bengaluru,including the office of Karnataka Bhovi Development Corporation (KBDC) located at V V Tower,Bengaluru and residential premises of the accused .
As part of the search proceedings incriminating documents,digital records and details of properties acquired out of Proceeds of Crime (POC) generated out of commission of offence of money laundering have been collected.
During the investigation it was found that Leelavathy was instrumental in the diversion of funds from KBDC by creating bank accounts fraudulently in the names of fake entities,in connivance with other suspects and accused including B K Nagarajappa (the then GM of KBDC),Subbappa (the then Superintendent of KBDC) and others.
They managed to divert funds from the accounts of KBDC to the accounts of fake entities and fake beneficiaries which was further transferred to friends and family members of the accused .
Several bank accounts were opened and many beneficiaries and intended beneficiaries were cheated by adopting a very well designed and fool proof modus operandi by BK Nagarajappa,Leelavathi,Subbappa and others,the investigation revealed.
Earlier,BK Nagarajappa was arrested and is in ED custody out of 14 days.
Based on the evidence gathered during the course of investigation,it was confirmed that Leelavathy is guilty of the offence of money laundering and has generated and layered the same using bank accounts of sister Late Mangala Ramu and integrated the funds in the bank accounts of her friends and family members through bogus entities created for this purpose. Further investigation in under progress.
