Pramesh S Jain
The Central Bureau of Investigation (CBI) has alleged that former Karnataka ST Welfare Minister B.Nagendra was at the centre of a meticulously planned conspiracy to siphon off funds from the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL),with investigators naming him as an accused in all three chargesheets filed on Tuesday in connection with separate corruption and fund diversion cases.
According to the CBI,the conspiracy involved Nagendra, his close associate Nekkanti Nagaraj,former KMVSTDCL Managing Director Padmanabha J.G.and Hyderabad-based operative Satyanarayana Varma.
Investigators alleged that Varma,who had previously executed a similar fraud in Chhattisgarh,helped orchestrate the opening of 18 bogus bank accounts using forged registration certificates and fabricated KYC documents.
The probe found that sensitive banking information and specimen signatures of KMVSTDCL officials were shared with the accused and that forged seals of the corporation’s Managing Director and Accounts Officer were created to facilitate fraudulent transactions.
Nearly ₹187 crore was pooled into KMVSTDCL’s account with Union Bank of India,of which ₹89.63 crore was allegedly diverted through forged cheques and RTGS transactions.
The money was then routed through around 600 bank accounts before being converted into cash,gold bullion and luxury vehicles.
The CBI further alleged that Nagendra was the beneficiary of a benami luxury vehicle purchased using diverted funds and that portions of the fraud proceeds were received by Nagaraj and his relatives.
Officials of Union Bank of India’s M.G.Road branch were also accused of facilitating the transactions in violation of banking norms.
The chargesheets were filed on Monday after the CBI completed its investigation into the alleged misappropriation of funds from KMVSTDCL.
The case originated from a complaint lodged by Union Bank of India against three officials of its M.G.Road branch in Bengaluru and other unknown persons.
The investigation was monitored by the High Court of Karnataka through regular status reports.
During the course of the probe,investigators uncovered similar frauds involving the State government’s ST Welfare Department and the Karnataka German Technical Training Institute (KGTTI).
Acting on the CBI’s findings, the High Court expanded the scope of the investigation in July 2025 to include the two entities.
In the ST Welfare Department case, the agency found that tenders worth Rs.13.95 crore for Smart Computer Labs and Roti Making Machines were awarded to SKR Infrastructure,a Bengaluru-based firm allegedly linked to Nagaraj.
The CBI alleged that Nagendra received illegal gratification of ₹1.20 crore through Nagaraj,with the money routed through accounts belonging to the minister’s sister, brother-in-law, personal assistant and a farmhouse owner in Ballari.
Nagaraj himself allegedly received Rs.5.72 crore from the contractor and related entities.
The investigation also revealed alleged irregularities in a ₹4.90-crore skill development training project awarded to KGTTI by the SC/ST Nomadic Tribes Development Corporation.
The project was allegedly subcontracted through multiple entities without any tender process.
According to the CBI,₹64 lakh was paid as illegal gratification to members of Nagaraj’s family,while ₹15.50 lakh was allegedly paid as a bribe to a section officer in the ST Welfare Secretariat.
The agency said it had gathered evidence against 30 accused persons, including Nagendra,Nagaraj,officials of KMVSTDCL,government officers,bank officials from Union Bank of India and Indian Overseas Bank,as well as several private individuals and middlemen.
Three separate chargesheets have now been filed,with Nagendra figuring as an accused in all three cases, underscoring what the agency described as his central role in the alleged conspiracy.
