The ED's chargesheet uncovered a scheme involving illegal fund transfers worth hundreds of crores into fake accounts, allegedly orchestrated by conspirators and bank officials, with Nagendra at the center
Published Apr 09, 2025 | 8:35 PM ⚊ Updated Apr 09, 2025 | 8:35 PM
B Nagendra being taken into custody by ED. (Screengrab)
Synopsis: Governor Thawar Chand Gehlot has sanctioned the prosecution of Ballari Rural MLA B Nagendra in connection with the Valmiki Corporation scam. The Enforcement Directorate (ED) alleges that Nagendra orchestrated illegal fund transfers during his tenure as Minister for Scheduled Tribes Welfare, leading to embezzlement involving hundreds of crores. Nagendra, currently out on bail, denies any involvement in the scandal
In a significant development, Governor Thawar Chand Gehlot has sanctioned the prosecution of Ballari Rural MLA B Nagendra in connection with the alleged Valmiki Corporation scam.
The sanction was issued on Monday, following an appeal from the Enforcement Directorate (ED) to prosecute Nagendra over his involvement in the irregularities surrounding the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd (KMVSTDC).
Nagendra, who is currently out on bail, has been accused of orchestrating a massive financial scandal during his tenure as the Minister for Scheduled Tribes Welfare.
The ED’s chargesheet, filed in October 2024, revealed a complex scheme involving illegal fund transfers, amounting to hundreds of crores, funnelled into fake accounts.
This operation was allegedly carried out by a group of conspirators in collusion with bank officials, with Nagendra reportedly playing a central role.
The scam’s history dates back to February 2024, when the Valmiki Corporation’s savings account was transferred from Union Bank of India’s Vasant Nagar branch to the MG Road branch in Bengaluru.
This transfer was allegedly conducted at Nagendra’s verbal instructions, without proper approval from the Corporation’s Board of Directors.
The ED claims that, once the account was moved, Nagendra’s associates exerted pressure to divert significant funds into the account, totaling ₹187.33 crore between March and May 2024.
Among these transfers was ₹43.33 crore from the State Treasury under the Ganga Kalyana Scheme, which was reportedly siphoned off in an orchestrated attempt to embezzle funds.
The charges against the accused extend beyond mere financial misappropriation. The ED has alleged that some of the siphoned funds were utilised to support the Congress party in recent Lok Sabha elections in Karnataka and Telangana.
The agency’s chargesheet outlined the methods employed to launder the money, indicating that a portion of the diverted amount was funnelled into 18 fake accounts, which were further layered through various shell entities.
The ED described Satyanarayana Varma and Etakari Satyanarayana as middlemen who played significant roles in laundering funds in Telangana, including using ₹20 crore to purchase liquor for election purposes in the state. In light of the scandal, B Nagendra resigned from his position
Nagendra, who was arrested and later released on bail, has strongly denied the allegations, accusing the ED of pressuring him to implicate prominent Congress leaders, including Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar.
Speaking to the media after his release, Nagendra claimed that the BJP was behind a conspiracy to destabilise Congress governments across the country, asserting that he had no role in the alleged scam.
(Edited by Ananya Rao)
