Ex-MD of Bhovi Corp arrested

Bengaluru: Enforcement Directorate Wednesday said it arrested R Leelavathi, former managing director of Karnataka Bhovi Development Corporation (KBDC), on money-laundering charges. Last week, ED arrested the corporation's former general manager, BK Nagarajappa.
According to an ED release, Leelavathi was arrested on April 12 following evidence of her involvement in money laundering. During investigation, it was found that she was instrumental in diversion of funds from KBDC by creating bank accounts fraudulently in the names of fake entities. This was done in connivance with other suspects, including former MD BK Nagarajappa, Subbappa (then superintendent of KBDC), and others, the ED release said.
They diverted funds from the accounts of KBDC to those of the fake entities and beneficiaries, which were transferred to friends and family members of the accused. Several bank accounts were opened and many beneficiaries cheated by adopting a well-designed and foolproof modus operandi by BK Nagarajappa, Leelavathi, Subbappa and others, ED said.