Published Jun 03, 2026 | 12:19 AM ⚊ Updated Jun 03, 2026 | 12:19 AM
CBI
Synopsis: The agency has now completed its investigation and filed three separate charge sheets relating to the alleged misappropriation of funds involving KMVSTDCL, the ST Welfare Department, and KGTTI. Notably, B. Nagendra has been named as an accused in all three charge sheets. According to the CBI, his inclusion across the cases reflects what investigators describe as his central role in the broader conspiracy spanning multiple government entities.
The Central Bureau of Investigation (CBI) on Tuesday, 2 June, filed three charge sheets against ex-Minister Nagendra and his close aides after completing an investigation into the misappropriation of funds of Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL) before the competent court.
This case was registered based on a written complaint lodged by Union Bank of India (UBI), naming three officials of UBI, M.G. Road Branch, Bengaluru, and unknown others. Investigation in the case was being monitored by High Court of Karnataka through regular status reports.
During the investigation of the UBI complaint, instances of fraud involving two other State government entities—the ST Welfare Department and the Karnataka German Technical Training Institute (KGTTI)—also came to light. These findings were brought to the attention of the High Court of Karnataka. Subsequently, through its order dated 01.07.2025, the High Court expanded the scope of the CBI investigation to include the alleged frauds involving these two entities as well.
The CBI has uncovered what it describes as a meticulously planned conspiracy behind the alleged diversion of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), naming several key accused, including former ST Welfare Minister B. Nagendra, his close associate Nekkanti Nagaraj, and KMVSTDCL Managing Director Padmanabha J.G.
According to the investigation, Hyderabad-based businessman Satyanarayana Varma played a central role in executing the fraud. CBI officials said Varma had allegedly been involved in a similar fraud in Chhattisgarh in the past. Investigators claim that Varma, in collusion with Etakari Satyanarayan, Chairman of First Finance Credit Cooperative Society Ltd. (FFCCSL), Hyderabad, facilitated the opening of 18 bogus bank accounts in the names of fictitious firms using forged registration certificates and fabricated KYC documents.
The probe found that sensitive banking information and specimen signatures of KMVSTDCL officials were allegedly shared with Varma through Nagaraj and other accused persons. Investigators also alleged that forged seals and rubber stamps of the corporation’s Managing Director and Accounts Officer were created by a graphic designer in Hyderabad and subsequently used to carry out fraudulent transactions.
According to the CBI, around ₹187 crore had been pooled into KMVSTDCL’s account with Union Bank of India. Of this, ₹89.63 crore was allegedly siphoned off through forged cheques and RTGS transfers. The diverted funds were then routed through nearly 600 bank accounts before being converted into cash, bullion, and luxury vehicles, investigators said.
The agency has further alleged that officials of Union Bank of India’s M.G. Road branch facilitated the transactions in violation of banking norms. The investigation also found that a luxury vehicle allegedly purchased using the diverted funds was held benami for the benefit of former minister B. Nagendra. Additionally, portions of the allegedly misappropriated funds were traced to Nagaraj and members of his family, according to the CBI.
The CBI investigation has also uncovered alleged irregularities in the award of government contracts by the ST Welfare Department during 2023-24. According to the agency, tenders worth ₹13.95 crore for Smart Computer Labs and Roti Making Machines were awarded to Bengaluru-based SKR Infrastructure, a firm owned by K. Srinivas Reddy, who is alleged to have close links with Nekkanti Nagaraj.
Investigators claim to have traced illegal payments linked to these contracts. The CBI alleged that former ST Welfare Minister B. Nagendra received ₹1.20 crore in illegal gratification through Nagaraj, with the funds routed to accounts belonging to the minister’s sister, brother-in-law, personal assistant, and the owner of a farmhouse in Ballari. Nagaraj himself allegedly received ₹5.72 crore from SKR Infrastructure and its sister concerns.
In a separate instance, the agency found alleged irregularities in the execution of a ₹4.90-crore skill development training project awarded by the SC/ST Nomadic Tribes Development Corporation to the Karnataka German Technical Training Institute (KGTTI), Bengaluru. According to the CBI, the contract was awarded at the instance of the minister and subsequently subcontracted, without a tender process, to Sadguru Education Trust and Sadguru Solutions, which in turn subcontracted the work to Skillpoint Training & Services, Guntur.
The investigation alleged that ₹64 lakh was paid as illegal gratification to members of Nagaraj’s family, while ₹15.50 lakh was paid as a bribe to Prakash N., a Section Officer in the ST Welfare Secretariat. The agency stated that it had gathered sufficient evidence to support the alleged conspiracy and financial transactions.
According to the CBI, the investigation has established the involvement of 30 individuals, including former minister B. Nagendra, his close associate Nekkanti Nagaraj, officials of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), state government officials, bank officials from Union Bank of India’s M.G. Road branch and Indian Overseas Bank’s Kukatpally branch in Hyderabad, as well as several private individuals and middlemen.
The agency has now completed its investigation and filed three separate charge sheets relating to the alleged misappropriation of funds involving KMVSTDCL, the ST Welfare Department, and KGTTI. Notably, B. Nagendra has been named as an accused in all three charge sheets. According to the CBI, his inclusion across the cases reflects what investigators describe as his central role in the broader conspiracy spanning multiple government entities.
