Bengaluru, June 2 (IANS) The Central Bureau of Investigation (CBI) on Tuesday filed three charge sheets in connection with the alleged misappropriation of funds from the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL) and two other state government entities, naming former Karnataka Scheduled Tribes Welfare Minister B. Nagendra among the accused.

According to the CBI, former Minister and Congress MLA B. Nagendra, his close associate Nekkanti Nagaraj, and Padmanabha J.G., the then Managing Director of KMVSTDCL, were among the key conspirators in the fraud.

The central agency alleged that Hyderabad-based businessman Satyanarayana Varma played a crucial role in executing the scheme.

The CBI has filed three separate charge sheets relating to the alleged misappropriation of funds in the three entities.

According to the CBI, former Minister Nagendra has been named as an accused in all three charge sheets, reflecting what it described as his central role in the alleged conspiracy.

The charge sheets were filed before the competent court following the completion of the CBI’s investigation into what the agency described as a “meticulously planned conspiracy” involving senior government officials, bank officials, middlemen and private individuals.

The case was initially registered on the basis of a complaint filed by Union Bank of India (UBI), which alleged fraud involving officials of its M.G. Road branch in Bengaluru.

During the course of the investigation, the CBI uncovered alleged financial irregularities involving the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI).

Subsequently, the Karnataka High Court expanded the scope of the investigation in July 2025 to cover these entities as well.

The investigation found that 18 bogus bank accounts were allegedly opened in the names of fictitious business entities using forged registration certificates and fabricated KYC documents.

The accused allegedly used forged seals and signatures of KMVSTDCL officials to divert funds from the corporation’s accounts.

The CBI said that nearly Rs 187 crore was pooled into a Union Bank account of KMVSTDCL, of which Rs 89.63 crore was fraudulently diverted through forged cheques and RTGS transactions.

The diverted funds were allegedly routed through nearly 600 bank accounts before being converted into cash, bullion and luxury vehicles.

The agency also alleged that bank officials of Union Bank’s M.G. Road branch actively facilitated the transactions in violation of banking norms.

It also claimed that a vehicle purchased using the diverted funds was held benami for the benefit of former Minister Nagendra, while portions of the alleged fraud proceeds were received by his associate Nagaraj and his relatives.

In a separate aspect of the investigation, the CBI alleged that tenders worth Rs 13.95 crore for Smart Computer Labs and roti-making machines awarded by the Scheduled Tribe Welfare Department during 2023-24 were linked to irregularities.

The central agency claimed that former Minister Nagendra received illegal gratification amounting to Rs 1.20 crore through Nagaraj, with funds allegedly routed through accounts belonging to the Minister’s relatives, personal assistant and a farmhouse owner in Ballari.

The investigation also examined a skill development project worth Rs 4.90 crore awarded by the SC/ST Nomadic Tribes Development Corporation to KGTTI, Bengaluru.

According to the CBI, the work was subsequently subcontracted without a tender process through multiple entities.

The agency alleged that Rs 64 lakh was paid as illegal gratification to members of Nagaraj’s family and Rs 15.50 lakh was paid as a bribe to a section officer in the Scheduled Tribe Welfare Secretariat.

The CBI said it had gathered sufficient evidence to establish the involvement of 30 individuals, including the former Minister, officials of KMVSTDCL, state government officers, bank officials from Union Bank of India and Indian Overseas Bank, as well as private individuals and intermediaries.

–IANS

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