Leelavathi, the managing director of Bhovi Development Corporation, was arrested by the ACB on Wednesday for “misusing” government funds. A court has sent her to judicial custody.
In April and May, police had searched Leelavathi’s houses in Mahalakshmi Layout and Jalahalli as well as the residences of the corporation’s general manager, Nagaraj, in Vijayanagar and Magadi Road.
The action followed a probe carried out on the basis of a complaint filed by a resident of Srinivasapur, Kolar district, that the two officials had "misused" about Rs 150 crore of the corporation's funds.
According to the complainant, the officials released more money to a few individuals under the Udyama Sheelata Abhivruddi Yojana (self-employment loans). Loans were also issued in the name of non-existent individuals.
After searching her premises, police had asked Leelavathi for files necessary for the investigation. But she neither responded nor cooperated in the probe. Accordingly, she was arrested.