CBI Files Chargesheet Against Ex-Karnataka Minister B Nagendra & Others In ₹89.63 Crore Valmiki Corporation Scam

Bengaluru: The CBI has filed charge sheet against former Karnataka Minister B Nagendra and others, in connection with illegal transfer of ₹89.63 crore from State Government's Valmiki ST Development Corporation to 18 accounts of Hyderabad based Itakari Sathyanarayana Varma in First Finance Credit Cooperative Society Limited.

The other accused in the case include Itakari Sathyanarayana, Valmiki ST Development Corporation Managing Director J G Padmanabha and Nagendra's personal assistant Nekkundi Nagaraj.

Besides illegal transfer of Valmiki Corporation funds, the CBI has also charged that the former Minister had purchased a luxury car from this money and also had received ₹1.2 crore kickback to pass a tender in favour of a contractor through his assistant Nekkundi Nagaraj. Besides, the CBI has charged that the former minister had misappropriated funds in the German Technical Training Institute.

The issue dates back to 2024, when Nagendra was Backward Class Development Minister in Siddaramaiah government. Following sucide of a Valmiki Corporation employee, who had written about illegal transfer of funds in his suicide note, the investigation was taken up. Due to pressure from the opposition, the investigation was handed over to the CBI.

During the investigation, it was revealed that over ₹89.63 crore money was illegally transferred from the Valmiki Board's Union Bank of India's MG Road branch account to 18 accounts in First Finance Credit Cooperative Society in Hyderabad. Society President Itakari Sathyanarayana had opened these accounts using fake registration certificates and fake KYC..

During the investigation, it was revealed that the Minister's assistant Nekkundi Nagaraj and the Valmiki Corporation Managing Director Padmanabha had provided Itakari Sathyanarayana with the bank account details, the authorised signature samples and shared the rubber stamp seals of the Valmiki Corporation. Using these details, Itakari Sathyanarayana illegally transferred money by either using Valmiki Corporation cheques or through RTGS, the CBI has pointed out.