CBI Files Chargesheet Against Former Karnataka Minister B. Nagendra In ₹89.63 Crore Valmiki Corporation Fund Diversion Case
The Central Bureau of Investigation has intensified its probe into the alleged financial irregularities involving Karnataka's Valmiki ST Development Corporation by filing a chargesheet against former minister B. Nagendra and several other accused.
The agency has alleged that ₹89.63 crore belonging to the state-run corporation was unlawfully routed from its official bank account into multiple accounts linked to Hyderabad-based businessman Itakari Sathyanarayana Varma through a cooperative financial institution.
Apart from Nagendra, those named in the chargesheet include Valmiki Corporation's former Managing Director J G Padmanabha and Nagendra's former personal assistant Nekkundi Nagaraj.
According to the investigating agency, the alleged fund diversion was part of a broader conspiracy involving forged documentation, unauthorized financial transactions and misuse of official credentials. Investigators claim that funds from the corporation's Union Bank account in Bengaluru were transferred into 18 separate accounts allegedly created using fabricated registration records and questionable KYC documents.
The CBI has further alleged that proceeds linked to the diverted funds were used for personal benefits. Among the accusations listed in the chargesheet are the purchase of a luxury vehicle and the receipt of an alleged ₹1.2 crore kickback connected to a government contract. Investigators also claim that financial irregularities extended beyond the Valmiki Corporation and involved transactions related to a German Technical Training Institute.
The case first came to public attention in 2024 after a Valmiki Corporation employee died by suicide. Authorities subsequently examined allegations mentioned in a note reportedly left behind by the employee, which referred to suspicious fund transfers within the corporation. The controversy soon escalated into a major political issue in Karnataka, prompting demands for an independent investigation.
Following mounting pressure from opposition parties, the matter was eventually handed over to the CBI for a detailed probe. During the investigation, officials allegedly uncovered evidence suggesting that internal access to banking information, signature samples and official seals had been misused to facilitate unauthorized transfers.
The agency contends that critical banking details belonging to the corporation were shared with the main accused, enabling transactions to be processed through cheques and electronic fund transfer mechanisms. Investigators believe these actions allowed large sums of public money to be moved without proper authorization.
