Bengaluru, June 3: The Central Bureau of Investigation (CBI) has taken significant action in the high-profile misuse of funds case linked to the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation Limited. The agency has filed charges against several accused, including a former minister. This case involves alleged embezzlement of the corporation’s funds and banking fraud.
The CBI initiated this investigation based on a complaint filed by the Union Bank of India’s MG Road branch in Bengaluru. The complaint accused certain bank officials and other unidentified individuals of serious financial irregularities. During the investigation, information emerged regarding cases connected to the state’s ST Welfare Department and the Karnataka German Technical Training Institute, prompting an expanded inquiry under the Karnataka High Court’s directives.
The investigation revealed that the entire operation was part of a well-planned conspiracy involving former ST Welfare Minister B. Nagendra, his close associate Nekkanti Nagaraj, and several others, including the corporation’s managing director. They allegedly collaborated to create fake documents, utilizing numerous shell companies and bank accounts to misappropriate government funds.
According to the investigation, approximately ₹187 crores were deposited into the Union Bank account of the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation. Of this amount, around ₹89.63 crores were transferred to various accounts through fraudulent checks and RTGS transactions. This money was circulated through nearly 600 bank accounts and later converted into cash, gold, silver, and luxury vehicles.
The CBI has indicated that some bank officials played a role in this network by overlooking regulations to facilitate these transactions. The investigation also uncovered that a portion of the misappropriated funds was used for political and personal gain.
Additionally, the inquiry revealed irregularities in other schemes operating under the ST Welfare Department. In the tenders for purchasing computer labs and machinery for the fiscal year 2023-24, significant discrepancies were found, including contracts awarded without proper procedures and substantial financial misconduct.
The agency has also identified numerous instances of bribery and illegal payments involving government officials, intermediaries, and private companies. The investigation traced millions of rupees in transactions through various accounts directly linked to the misuse of public funds.
The CBI has completed its investigation and filed three separate charge sheets in court. According to the agency, the involvement of approximately 30 individuals, including former minister B. Nagendra, government officials, bank employees, and private individuals, has been established. The legal proceedings in this case will continue in court.
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