B Nagendra quits Karnataka Cabinet again as Valmiki Corporation case returns to haunt him

Karnataka minister B Nagendra resigned from the DK Shivakumar-led Cabinet on Friday, marking his second exit from the state government in two years over allegations linked to the Maharshi Valmiki Scheduled Tribes Development Corporation case.

An emotional Nagendra broke down while announcing his resignation at a press conference, days after the Opposition BJP stepped up its campaign demanding his removal. He had returned to the Cabinet only on August 3, nearly two years after resigning from the Siddaramaiah ministry over the same controversy. Nagendra, who held the Planning and Statistics portfolio, maintained that the allegations against him were politically motivated and said he believed in the Constitution. He accused the BJP of targeting him and challenged the Opposition to debate the charges against him.

Second resignation in two years

Nagendra was Tribal Welfare Minister in the Siddaramaiah government when the alleged financial irregularities surfaced in 2024. He resigned in June that year as the controversy intensified. The case centres on the alleged unauthorised diversion of about Rs 89 crore from accounts belonging to the state-run corporation established for the welfare of Scheduled Tribes.

The controversy erupted after corporation accounts officer P Chandrasekharan died by suicide in May 2024. A note recovered following his death alleged unauthorised movement of funds, prompting investigations into transactions involving the corporation's accounts. Nagendra was subsequently arrested by the Enforcement Directorate in July 2024 and was granted bail by a Bengaluru court in October that year. He has been named in chargesheets filed in connection with the case. The allegations against him have not been finally adjudicated by a court.

Re-induction sparked political row

Nagendra returned to the government following the change of leadership in Karnataka, with DK Shivakumar taking over as Chief Minister from Siddaramaiah earlier this year. His re-induction immediately drew criticism from the BJP and JD(S), which questioned why a leader who had earlier resigned over the case had been brought back into the Cabinet.

The issue dominated the recent Monsoon Session of the Karnataka Legislature, with Opposition members repeatedly disrupting proceedings and demanding Nagendra's removal. The Shivakumar government initially defended the decision, maintaining that an official report had found no involvement on Nagendra's part. The Chief Minister had also accused the Opposition of selectively targeting the minister.

CBI move adds to pressure

Political pressure increased further after reports emerged that the Central Bureau of Investigation had approached Governor Thaawarchand Gehlot seeking sanction to prosecute Nagendra. The CBI has been investigating the alleged diversion of funds from the Valmiki Corporation and has named Nagendra among those accused in the case.

Nagendra had earlier dismissed reports that he was preparing to resign, saying on Wednesday that no discussion regarding his exit had taken place. Two days later, however, he announced that he was stepping down.

BJP plans 'padayatra'

The BJP has also announced a multi-day padayatra from Raichur to Ballari beginning September 1, with the Valmiki Corporation case expected to be one of its central issues. The Opposition has sought to use the controversy to attack the Congress government over corruption, while Nagendra has accused the BJP of pursuing an anti-tribal political campaign against him.

His resignation now leaves the Shivakumar government facing another Cabinet vacancy barely weeks after its expansion and brings renewed attention to a case that has remained a major political flashpoint in Karnataka for more than two years.