Karnataka Guv nod for ED to prosecute ex-Minister Nagendra in Valmiki Corporation scam

Bengaluru: Karnataka Governor Thaawarchand Gehlot has granted permission to the Enforcement Directorate (ED) to prosecute former minister B Nagendra in connection with the multi-crore scam in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.

“The Governor granted the ED sanction to prosecute former minister Nagendra on Saturday,” official sources said.

A special court here had granted bail to the Congress MLA in October 2024, after he was arrested by the ED in connection with the scam.

Nagendra was arrested in July under the provisions of the Prevention of Money Laundering Act (PMLA), along with other key accused identified during the investigation.

He had resigned as the Minister for Scheduled Tribes Welfare in June last year, following allegations of his involvement in the scam.

The ED had earlier said that Nagendra was identified as the primary accused and the mastermind behind the scam, allegedly orchestrating it with the help of 24 others.

According to the agency, under Nagendra’s influence, the Corporation’s account was shifted to the MG Road branch of a bank without proper authorisation. A total of Rs 187 crore—including Rs 43.33 crore from the State Treasury under the ‘Ganga Kalyana Scheme’—was deposited into this account in violation of government procedures and guidelines.

“These funds were subsequently siphoned off through multiple shell accounts and converted into cash and bullion,” the ED alleged.

The investigation also revealed that Rs 20.19 crore of the diverted funds was used to support a candidate contesting the 2024 Lok Sabha elections from the Bellary constituency, as well as for Nagendra’s personal expenses.

The agency had earlier stated that it filed a prosecution complaint (charge sheet) in the case before a special PMLA court in Bengaluru, which has taken cognisance of it.