On "06/04/2025", the "Enforcement Directorate (ED)" issued an update regarding "ED, Bengaluru Zonal Office has conducted search operations on 04.04.2025 under the provisions of PMLA, 2002 at various locations across Bengaluru, including the office of Karnataka Bhovi Development Corporation (KBDC) located at V V Tower, Bengaluru and residential premises of accused/suspected persons. During the search operations, various incriminating documents, digital records and details of properties have been seized. And also SB K Nagarajappa was arrested on 05.05.2025. The investigation, initiated under PMLA, 2002, revealed B K Nagarajappa's involvement in diverting funds from KBDC using fake beneficiaries' bank accounts provided by agents from the Bhovi community. This led to further laundering of funds through entities incorporated in the name of accomplices and friends/family members of accused/suspected persons.