Congress MLA from Bellary Rural Assembly seat B Nagendra was detained by the ED from his Dollar's Colony residence in Bengaluru.
After 40 hours of investigation, raids and interrogations, ED officials detained Nagendra for further questioning.
The ED had raided Nagendra's houses and office the previous day and for 40 hours, officials did not allow the former minister and his family to leave their house and interrogated them continuously.
Sources explained that Nagendra was uncooperative and claimed that he had no idea about irregularities in the Board.
Nagendra's PA Harish, who has also been in ED custody since Thursday, has provided vital information about his involvement.
Today, officials will question Nagendra at the ED office in Bengaluru.
Harish's statement provided some evidence about transfer of corporate funds to an account opened with fake documents in Union Bank of India, sources claimed.
Verification of the bank's CCTV records also confirmed that Nagendra PA Harish and KMVSTDC president and Congress MLA Basanagouda Daddal visited the bank.
The bank officials in custody revealed details about the agreement between them.
Nagendra is accused of receiving hawala money and gold biscuits, and transactions of more than Rs 50 crore are suspected to have been carried out in his name.
The CBI is also conducting an investigation into the board misappropriation case.
Apart from the residences of Nagendra and Daddal, the ED also raided the houses of three Union Bank staff members.
The ED has seized important documents and digital evidence regarding illegal fund transfers.
The Special Investigation Team (SIT) formed by the Karnataka government arrested 11 people in connection with the scam, including senior officials of Union Bank of India, board officials, middlemen and associates of Nagendra and Daddal.
The arrests were also made in the city of Hyderabad.
After 40 hours of investigation, raids and interrogations, ED officials detained Nagendra for further questioning.
The ED had raided Nagendra's houses and office the previous day and for 40 hours, officials did not allow the former minister and his family to leave their house and interrogated them continuously.
Sources explained that Nagendra was uncooperative and claimed that he had no idea about irregularities in the Board.
Nagendra's PA Harish, who has also been in ED custody since Thursday, has provided vital information about his involvement.
Today, officials will question Nagendra at the ED office in Bengaluru.
Harish's statement provided some evidence about transfer of corporate funds to an account opened with fake documents in Union Bank of India, sources claimed.
Verification of the bank's CCTV records also confirmed that Nagendra PA Harish and KMVSTDC president and Congress MLA Basanagouda Daddal visited the bank.
The bank officials in custody revealed details about the agreement between them.
Nagendra is accused of receiving hawala money and gold biscuits, and transactions of more than Rs 50 crore are suspected to have been carried out in his name.
The CBI is also conducting an investigation into the board misappropriation case.
Apart from the residences of Nagendra and Daddal, the ED also raided the houses of three Union Bank staff members.
The ED has seized important documents and digital evidence regarding illegal fund transfers.
The Special Investigation Team (SIT) formed by the Karnataka government arrested 11 people in connection with the scam, including senior officials of Union Bank of India, board officials, middlemen and associates of Nagendra and Daddal.
The arrests were also made in the city of Hyderabad.
