Former Karnataka Minister Detained in Valmiki Development Corporation Scam

The Enforcement Directorate (ED) detained ex-Karnataka Minister B Nagendra in connection with an alleged embezzlement case involving the Valmiki Development Corporation. Union Minister Shobha Karandlaje has implicated Karnataka CM Siddaramaiah, calling for his resignation. The case emerged after a corporation official’s suicide note exposed the alleged scam.

The Enforcement Directorate (ED) on Friday detained former Karnataka Minister B Nagendra in connection with the alleged Valmiki Development Corporation scam case. This development follows raids conducted by the ED at multiple locations on Wednesday tied to Nagendra and MLA Basanagouda Daddal concerning alleged financial misappropriations within the Valmiki Development Corporation.

On June 6, Nagendra announced his voluntary resignation, citing the ongoing investigation into allegations of illegal fund transfers involving Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. Nagendra has denied any wrongdoing, expressing confidence that the investigation will clear his name of all allegations.

The controversy escalated on Thursday when Union Minister and BJP MP Shobha Karandlaje accused Karnataka Chief Minister Siddaramaiah of being complicit in the scam, calling for his resignation. Karandlaje revealed she had written to the Union Home Minister on July 3, demanding a CBI probe into the matter. She claimed the Karnataka government formed a Special Investigation Team (SIT) to obscure the scam, but despite this, ED raids continued across Hyderabad, Bengaluru, and Bellary. According to Karandlaje, only Siddaramaiah's resignation can ensure justice.

Karandlaje further alleged that, as Finance Minister, Siddaramaiah would have needed to authorize the suspicious transfer of Rs 187 crores to various companies. In response, Karnataka Deputy CM stated that the ED raids were unnecessary, indicating the SIT had already investigated and reclaimed the funds. The deputy CM emphasized that the CBI had filed an FIR and commenced their investigation, noting ED's limited jurisdiction in the matter.

The Maharshi Valmiki Scheduled Tribes Development Corporation corruption case surfaced after a corporation official, identified as Chandrasekaran, committed suicide on May 26. The 45-year-old superintendent left a six-page note exposing multi-crore corruption within the corporation, implicating three officials and demanding action. The note revealed Chandrasekaran's distress at the pervasive corruption, which led to his drastic action.

(With inputs from agencies.)