Named by the Enforcement Directorate as ‘mastermind’ in the Valmiki Corporation case, B Nagendra claimed that this was a banking issue, not a government scam.
Published Oct 16, 2024 | 8:56 PM ⚊ Updated Oct 16, 2024 | 8:56 PM
B Nagendra being taken into custody by ED. (Screengrab)
Following his release from Bengaluru’s Parappana Agrahara prison, former Congress minister B Nagendra accused the Enforcement Directorate (ED) of pressuring him to implicate Chief Minister Siddaramaiah and Deputy Chief Minister DK Shivakumar in the alleged Valmiki Corporation scam.
Nagendra told reporters in Bengaluru, “The BJP is conspiring to destabilise Congress governments across the country. For the past three months, the ED has been torturing me to undermine our government.” He insisted that despite clarifying his lack of involvement in the alleged scam, he was arrested.
Nagendra further stated that the ED attempted to coerce him into naming Siddaramaiah and Shivakumar, saying, “How can I implicate them when I had no role in this matter?” He emphasised there was no connection between the government and the funds involved, labelling the situation as a conspiracy orchestrated by BJP leaders.
Criticising the BJP, he mentioned their recent padayatra from Bengaluru to Mysuru regarding the MUDA scam, stating, “They wasted time and energy; their true motive is to destabilise governments.”
Nagendra explained that the ED urged him to link Siddaramaiah to the Finance Department concerning a financial transfer that occurred without written or oral orders.
“This is not a government scam but a banking issue,” he asserted, denying any recommendations for the transaction.
ED identified B Nagendra, an MLA and former Minister for Scheduled Tribal Affairs, as the alleged mastermind behind this operation.
Alongside Nagendra, 24 others have been implicated, including notable associates like Satyanarayana Varma, Etakari Satyanarayana, J.G. Padmanabha, Nageshwar Rao, Nekkenti Nagaraj, and Vijay Kumar Gowda.
The agency’s investigation was initiated based on First Information Reports (FIRs) filed by the Karnataka Police and the Central Bureau of Investigation (CBI).
Investigators uncovered that under Nagendra’s direction, funds were illegally moved from the Corporation’s account to a new location at the MG Road Branch, bypassing proper authorisation.
Approximately ₹187 crore was deposited there, including ₹43.33 crore from the State Treasury linked to the Ganga Kalyana Scheme.
This improper transfer of funds directly violated government guidelines, facilitating the siphoning of substantial amounts into fake accounts across Andhra Pradesh and Telangana.
The investigation highlighted a disturbing trend: a portion of the diverted funds—₹20.19 crore—was reportedly used to finance a candidate’s campaign for the 2024 Lok Sabha elections in Bellary, as well as for Nagendra’s personal expenses.
Expressing gratitude to the judiciary for granting him bail, he vowed to fight the “baseless allegations,” claiming the Special Investigation Team (SIT) had already confirmed his non-involvement in the case.
He accused the BJP of orchestrating his arrest, labelling it a clear conspiracy aimed at destabilising the government.
Additionally, Nagendra criticised the ED’s focus on opposition leaders, mentioning cases against Delhi’s former Chief Minister Arvind Kejriwal and others. He concluded, “I will continue to fight against the BJP and its conspiracies. We will win all three upcoming assembly by-polls.”
(Edited by Ananya Rao)
