CBI chargesheets ex-Karnataka minister Nagendra, aide in Valmiki Corporation ‘scam’

The CBI on Tuesday filed three chargesheets against then-Karnataka minister B Nagendra and his close associate Nekkanti Nagaraj in connection with the alleged diversion of Rs 89 crore in state government funds earmarked for Scheduled Tribes for personal gains, officials said. The CBI submitted the chargesheets before a competent court in Bengaluru after completing its investigation into the alleged misappropriation of funds of the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), ST Welfare Department, and the Karnataka German Technical Training Institute (KGTTI).

The investigators contend that money intended for some of Karnataka's most economically vulnerable communities was siphoned away through a scheme that undermined the purpose of public welfare spending. Founded in 2006, the Valmiki Corporation was established to implement development schemes aimed at improving the socio-economic conditions of the Scheduled Tribes in the state. “Nagendra figures as an accused in all three chargesheets, reflecting the pervasive and central role he played across each strand of this criminal conspiracy,” a CBI spokesperson said in a statement. It is alleged that Rs 187 crore was pooled into KMVSTDCL's Union Bank of India account by its managing director and accounts officer.

“A sum of Rs 89.63 crore was fraudulently diverted through forged cheques and RTGS transactions, and the diverted funds were further layered through approximately 600 bank accounts and ultimately converted into cash, bullion, and luxury vehicles for the benefit of the accused,” the agency alleged.