The scam, involving diverting of ₹89.62 crore from the Maharshi Valmiki ST Welfare Corporation, was exposed following the suicide of Valmiki Corporation’s officer Chandrashekhar in May 2024.
Published Oct 09, 2024 | 8:06 PM ⚊ Updated Oct 09, 2024 | 8:13 PM
Valmiki scam : ED names B. Nagendra as mastermind
The Enforcement Directorate (ED) has filed a Prosecution Complaint (PC) before the Special Court for MPs and MLAs in Bengaluru in connection with the Karnataka Maharishi Valmiki ST Development Corporation Scam.
According to the ED: “The investigation revealed the illegal diversion of Rs 89.62 crore from the Corporation’s accounts into fake accounts in Andhra Pradesh and Telangana, later laundered through shell entities.”
“An additional Rs. 20.19 Crore of diverted funds was allegedly used to support a candidate in the 2024 Lok Sabha election from Ballari, along with personal expenses for Nagendra,” the ED stated that they have collected necessary evidences as well.
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.
Evidence supporting these claims was obtained during search operations and financial analyses, with key details extracted from the mobile phone of Vijay Kumar Gowda, who allegedly managed cash transactions on Nagendra’s behalf.
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. He is now facing accusations of obstructing the investigation by destroying mobile phones and attempting to intimidate witnesses into silence.
The ED has since arrested Nagendra along with five other key individuals involved in the scam.
(Edited by Ananya Rao)
