Bengaluru: The Central Bureau of Investigation (CBI) on Tuesday (June 3) filed three detailed chargesheets against B. Nagendra, the Congress MLA and former minister of Scheduled Tribes Welfare, Karnataka and 29 others in connection with the alleged multi-crore Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL) scam.
The chargesheets, submitted before a competent court after the completion of an extensive investigation, pertain to the alleged misappropriation of funds from the Valmiki Corporation, the Scheduled Tribes Welfare Department, and the Karnataka German Technical Training Institute (KGTTI).
According to the CBI, former Minister B. Nagendra has been named as an accused in all three chargesheets, highlighting what the agency described as his central role in the alleged conspiracy. The probe agency has also named Nagendra’s close associate Nekkanti Nagaraj and former KMVSTDCL Managing Director Padmanabha J.G. among the principal accused.
The investigation originated from a complaint filed by Union Bank of India regarding suspicious transactions involving officials of its M.G. Road branch in Bengaluru. During the probe, investigators uncovered a larger network of financial irregularities involving multiple government entities and private individuals.
CBI files Chargesheets against the then Minister and others in Karnataka’s Valmiki Corporation Fraud pic.twitter.com/6NC0hN3wvG
— Central Bureau of Investigation (India) (@CBIHeadquarters) June 2, 2026
The CBI alleged that Hyderabad-based businessman Satyanarayana Varma played a key role in executing the fraud. Investigators found that 18 fake bank accounts were allegedly opened in the names of fictitious firms using forged registration certificates and fabricated Know Your Customer (KYC) documents.
According to the agency, forged seals and signatures of KMVSTDCL officials were used to siphon off funds from the corporation. Nearly Rs 187 crore had been pooled into a Union Bank account belonging to the corporation, out of which Rs 89.63 crore was allegedly diverted through forged cheques and fraudulent RTGS transactions.
The diverted money was allegedly routed through nearly 600 bank accounts to conceal its origin before being converted into cash, gold bullion and luxury vehicles. The CBI further alleged that officials of Union Bank’s M.G. Road branch actively facilitated these transactions by violating established banking norms and compliance procedures.
Investigators have also claimed that a luxury vehicle purchased using the diverted funds was held benami for the benefit of former Minister Nagendra. Additionally, portions of the alleged proceeds were reportedly transferred to Nagaraj and his family members.
In another significant finding, the CBI examined the award of contracts worth Rs 13.95 crore for Smart Computer Labs and roti-making machines by the Scheduled Tribes Welfare Department during 2023-24. The agency alleged that irregularities were committed during the tender process and that illegal gratification was paid in return.
According to the chargesheet, Nagendra allegedly received kickbacks amounting to Rs 1.20 crore through Nagaraj. The money was reportedly routed through bank accounts belonging to the minister’s relatives, his personal assistant and a farmhouse owner in Ballari.
The investigation also focused on a Rs 4.90 crore skill development project awarded by the SC/ST Nomadic Tribes Development Corporation to KGTTI, Bengaluru. The CBI alleged that the project was subsequently subcontracted through multiple entities without any transparent tender process.
The agency further claimed that Rs 64 lakh was paid as illegal gratification to members of Nagaraj’s family, while a section officer in the Scheduled Tribes Welfare Secretariat allegedly received a bribe of Rs 15.50 lakh.
The CBI stated that it has gathered substantial documentary, financial and digital evidence to establish the involvement of 30 accused persons. These include former Minister Nagendra, senior officials of KMVSTDCL, government officers, officials from Union Bank of India and Indian Overseas Bank, private businessmen and intermediaries.
