Bengaluru: The Enforcement Directorate (ED) on Wednesday conducted searches in four states, including the premises of former Karnataka minister and Congress leader B. Nagendra and MLA B. Daddal, in connection with a money laundering investigation linked to alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, media reported.

The agency conducted operations at nearly 20 locations in Karnataka, Andhra Pradesh, Telangana, and another state as part of an investigation under the Prevention of Money Laundering Act (PMLA), PTI reported.

The premises of Congress leader and former Karnataka Tribal Welfare and Sports Minister Nagendra, Congress MLA from Raichur rural seat Daddal, as well as some entry operators and related entities are being searched, according to the report.

Daddal also was also the chairperson of the Corporation.

A Special Investigation Team (SIT) from the Karnataka Police CID questioned both leaders on Tuesday in connection with the case.

The alleged scam came to light following the death of the Corporation's accounts superintendent, Chandrasekharan P, on May 21.

In his suicide note, he alleged the illegal transfer of money from the Corporation to various bank accounts. Subsequently, two officials were suspended, and under mounting pressure, Minister Nagendra resigned on May 29.

Chandrasekharan's suicide note claimed an unauthorised transfer of Rs 187 crore from the state-run Corporation's bank account.

A total of Rs 88.62 crore was allegedly deposited into various accounts of some IT companies and a Hyderabad-based cooperative bank.

While the state government has set up the SIT to investigate, the Central Bureau of Investigation is also probing the matter based on a complaint by the Union Bank of India.