Lokayukta M.N.Venkatachala, in a surprise raid on the Hunsur DCF office on Saturday, stumbled on files which showed massive misappropriation of funds in the Eco-Development project taken up at the Nagargole Reserve Forests in Karnataka. In an early morning swoop, Venkatachala confiscated incriminating documents with regard to the Rs 36-crore eco-development project from the office of Hunsur DCF, A.M.Annaiah. Venkatachala, who was assisted by the Chairman of the Health Task Force H. Sudharshan stumbled on documents which revealed indiscriminate logging activities inside the reserve forests in Veeranahosalli range.