Karnataka ST Welfare Minister Resigns Over ₹89.63 Crore Scam in Valmiki Corporation
Karnataka's Scheduled Tribe Welfare Minister B. Nagendra resigned on Friday following mounting pressure from opposition parties over alleged financial irregularities of ₹89.63 crore in the Karnataka Maharishi Valmiki Scheduled Tribe Development Corporation (KMVSTDC). Nagendra denied all charges, claiming he had no signature on any of the disputed transactions.
The scam involves the alleged illegal diversion and misappropriation of ₹89.63 crore from the corporation's total fund of ₹187 crore, which was earmarked for tribal welfare and development. The money was allegedly routed through shell companies, IT firms, and cooperative credit society accounts instead of welfare schemes.
The fraud came to light following the suicide of Chandrashekharan P, the 52-year-old accounts superintendent at the corporation, who left a detailed note alleging pressure from top management to authorize illegal transfers. Investigation revealed approximately ₹88.62 crore was transferred from the Union Bank of India account to unauthorized accounts via fraudulent cheques, RTGS, and online transfers.
