Now, hawala scam may haunt Yeddy

Enforcement Directorate is reportedly building a case against former CM and his 'good friend' Shobha Karandlaje. This is first time she has been named in a scam linked to B S Yeddyurappa

Now, hawala scam may haunt Yeddy

Enforcement Directorate is reportedly building a case against former CM and his 'good friend' Shobha Karandlaje. This is first time she has been named in a scam linked to B S Yeddyurappa

Friend indeed: Shobha Karandlaje has been named for the very first
time in a scam linked to Yeddyurappa. Pic/Satish Badiger

Yeddyurappa, who is accused in several corruption cases, is said to be under the scanner of the Enforcement Directorate (ED), which is reportedly building a strong case against him. The significance of the case is that close associate Shobha Karandlaje, who was immune to corruption charges involving the former CM so far, is linked and her name is surfacing for the first time.

Shobha is a minister in CM Sadananda Gowda's cabinet and has retained the same miniseries she held while in the erstwhile Yeddyurappa cabinet- food and civil supply and power. According to available information, Yeddyurappa has multiple bank accounts in Dubai and Hong Kong, and has invested in various businesses including real estate and hospitality. The ED is believed to have traced illegal money transfers from a city branch of a nationalised bank to these accounts.

A source in the ED informed that Yeddyurappa's sonsu00a0-- B Y Raghavendra and B Y Vijendrau00a0-- were also mentioned in the case. Evidences points to involvement of his family members in companies based in Dubai, Hong Kong and Dubai and give enough ground to prove that they are the front companies of the family.
The ED and I-T departments have reportedly gathered details of investments made in several five star hotels in the countries mentioned.

u00a0"The cases surfacing so far pertain to irregularities at local level, but the case being built by the ED is fraud at an international level. It's huge in terms of money transfers and illegal transactions," said the source.
While declining to divulge intricate details, the source hinted that the Income Tax (I-T) department is also conducting an investigation even as the ED has gathered vital information to book him under Prevention of Money Laundering Act and Foreign Exchange Maintenance Act.

It is to be noted that Yeddyurappa and Shobha used to make quick trips to Dubai and Hong Kong, while H D Kumaraswamy, former CM and state president of JD(S), accused them of running front companies in foreign countries.

While Yeddyurappa and Shobha were not available for comment, R P Jagadish, spokesperson to the former CM said, "We don't have any details on the issue and have not received any notice from either the ED or I-T department. So, it is a hypothetical situation that requires no reaction."

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