The Enforcement Directorate (ED) has identified Congress MLA and former Minister B. Nagendra as the “mastermind” behind a multi-crore scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. The ED, which has already filed a chargesheet in a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, revealed that funds from the State-run entity were allegedly diverted to support a candidate in the 2024 Lok Sabha elections and cover Nagendra’s personal expenses.
According to the ED, ₹187 crore, including ₹43.33 crore from the State treasury under the Ganga Kalyana Scheme, was deposited into the corporation’s account, which had been shifted to a Union Bank of India branch on M.G. Road, Bengaluru, without proper authorization. These funds were reportedly siphoned off through shell accounts and converted into cash and bullion.
Nagendra, a former Minister for Scheduled Tribes Welfare, was named as the primary accused, along with 24 associates, including Satyanarayana Varma, Etakari Satyanarayana, J.G. Padmanabha, Nageshwar Rao, Nekkenti Nagaraj, and Vijay Kumar Gowda. The ED’s investigation uncovered that ₹20.19 crore of the diverted funds were used to support a candidate in the Ballari constituency during the 2024 Lok Sabha elections.
Nagendra resigned as Minister for Scheduled Tribes Affairs in June 2024, following the exposure of fraudulent transactions, which came to light after the suicide of an employee at the Corporation in May. The ED’s investigation revealed that ₹89.62 crore had been laundered through fake accounts in Andhra Pradesh and Telangana.
