CBI raids premises of former Karnataka minister B Nagendra in Valmiki STDC scam

The Central Bureau of Investigation (CBI) on Monday carried out searches at 16 locations across Karnataka and Andhra Pradesh in connection with the alleged siphoning of government funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL).

The raids targeted the residences and offices of the former Karnataka Minister’s sister, brother-in-law, personal assistant, and other close associates.

Notably, Karnataka’s Scheduled Tribes Welfare, Youth Empowerment and Sports Minister B Nagendra had in June last year tendered his resignation, amid allegations of the illegal transfer of money from KMVSTDCL.

Officials said the searches led to the recovery of incriminating documents, property deeds, bank statements and details of vehicles believed to have been purchased using proceeds of the crime.

The case was first registered by CBI on June 3, 2024, following a complaint by the Deputy General Manager of Union Bank of India. The bank alleged cheating, forgery and criminal misappropriation involving illegal transfers and withdrawals amounting to Rs 84.63 crore from KMVSTDCL’s account at its MG Road branch in Bengaluru between February 21 and May 6, 2024.

The Karnataka High Court, which has been monitoring the probe, has so far received four status reports from the agency.

As per CBI, the investigations have since uncovered further diversions of government funds in 2024, involving the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI). Following a CBI status report, the high court granted permission for a wider probe.

According to investigators, Rs 2.17 crore belonging to the ST Welfare Department was transferred from its account at Bank of Baroda, Siddaiah Road branch, into the account of a private company owned by a close associate of the former minister.

Of this, about Rs 1.20 crore was allegedly funnelled into the accounts of the minister’s sister, brother-in-law and personal assistant. Funds were also linked to the owner of a farmhouse in Bellary where the minister frequently stayed, a senior officer said.

In a parallel finding, CBI officials revealed that Rs 64 lakh belonging to KGTTI was diverted from its Canara Bank account in Wilson Garden, Bengaluru, into accounts linked to the brother and nephew of another close aide of the former minister.