The scam involves diverting ₹89.62 crore from the Maharshi Valmiki ST Welfare Corporation to fund the Congress in recent Karnataka and Telangana Lok Sabha elections, according to the ED chargesheet.
Published Sep 11, 2024 | 4:47 PM ⚊ Updated Sep 11, 2024 | 6:45 PM
KTR alleges favouritism by Telangana CM Revanth Reddy
Telangana is experiencing tremors of what has come to be known as the Valmiki scam that is rocking the neighbouring Karnataka as the Enforcement Directorate (ED), in its chargesheet filed in a Bengaluru court on Monday, 9 September, named two persons from Hyderabad in the case.
The two persons were Satyanarayana Varma (A2) and Satyanarayana Itakari (A3). Itakari is the chairman of the First Finance Credit Cooperative Society.
The A1 in the case is the former tribal welfare minister of Karnataka, B Nagendra, who is in judicial custody after his arrest by the ED on 12 July. The ED listed a total of 24 persons as accused in the case.
The scam is about the diversion of funds of the Maharshi Valmiki Scheduled Tribes Welfare Corporation of Karnataka through different means. The charge against the accused is that they had used the money to fund Congress in the recent Lok Sabha election in Karnataka and Telangana. The ED, in its chargesheet said that ₹89.62 crore of corporation funds had been diverted.
The charge sheet said that of the siphoned amount a portion was diverted to 18 fake accounts in Andhra Pradesh and Telangana and “layered” to fake and shell accounts.
The accused in the case were paid back in bullion and cash. The ED had described Satayanrayana and Satyanarayana Itakari as middlemen, who had laundered the money in Telangana. The chargesheet also mentioned that it had evidence of ₹20 crore of the scam money being spent in buying liquor for use in Lok Sabha elections in Telangana.
The scam came to light after one of the officials of the Valmiki Corporation ended his life in his residence in Shivamogga in Karnataka on 26 May, leaving behind a suicide note, in which he gave a graphic account of the unauthorised transfer of money from Valmiki Corporation’s account.
The official, P Chandrasekhar, was involved in auditing the accounts of the corporation.
After the scam broke out, the Karnataka government constituted a Special Investigation Team (SIT) which in its chargesheet filed in August, had named among others Satyanarayan Etakari, Nageswaara Rao, M Chandramohan and Satyanarayana Varma of Hyderabad, Pittala Srinivas and K Srinivasa Rao from Andhra Pradesh.
In the second charge sheet, the SIT said there was a diversion of ₹89.62 crore of Tribal Welfare Corporation funds.
After people from Hyderabad were mentioned in the case, the BRS began accusing them of having a connection with the Congress leaders in Telangana.
In August, BRS working president KT Rama Rao (KTR) described the link between the scam and Telangana politicians and businessmen as intriguing.
He wanted to know who the holders of the nine bank accounts in Hyderabad to which the Valmiki Corporation’s ₹45 crore had been transferred. He also wanted to know why the news of the raids by the SIT, Karnataka Crime Investigation Department (CID) and ED in Hyderabad was suppressed.
KTR demanded to know who the owner of the V6 Business to which ₹4.5 crore had been transferred. He asked who the people were, who ran the bars and gold shops in Hyderabad from where cash was withdrawn during Lok Sabha elections and their connection with Congress.
He recalled Karnataka Chief Minister Siddaramaiah admitting in the state Assembly that ₹90 crore had been embezzled.
The MLA wanted to know why Karnataka Minister Satish Jarakiholi had said that the Telangana government would collapse if Siddaramaiah was removed. He wanted an answer to the silence of the ED even though they had substantial leads and who was protecting the Congress in Telangana.
In a message on X, on Wednesday, 11 September, KTR said his worst fears had come true, that the Congress may have utilised the proceeds of the scam in the Lok Sabha elections. “The Congress which used the funds for election purpose which were meant for the welfare of the tribals should be punished,” he said.
మేమన్నదే నిజమైంది!
👉 వాల్మీకీ స్కామ్ పైసలే తెలంగాణ కాంగ్రెస్ మొన్న లోక్సభ ఎన్నికల్లో వాడింది!
👉 గిరిజనుల బాగుకోసం ఖర్చు చేయాల్సిన సొమ్మును ఎన్నికల ప్రచారం కోసం వాడుకున్న కాంగ్రెస్ నేతలను శిక్షించాలి!
వాల్మీకి కుంభకోణంలో కాంగ్రెస్ నేత, కర్ణాటక మాజీ మంత్రి బీ నాగేంద్రనే… https://t.co/ChAF3RLbTq pic.twitter.com/Zroj5089VX
— KTR (@KTRBRS) September 11, 2024
The BRS leader said: “The ED has listed former Tribal Welfare Minister Nagendra as prime accused. A sum of ₹187 crore of the Valmiki corporation had changed hands. The money finally was used in the Lok Sabha elections in Telangana.”
He said that one of the accused in the scam Satyanarayana Varma is a builder in Hyderabad. He has links with two important Congress leaders.
KTR said it was likely that these leaders have a partnership in Varma’s business. It remains to be seen how many Telangana skeletons would tumble out of the Valmiki scam’s cupboard.
(Edited by Ananya Rao)
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