CBI raids about 16 premises in Valmiki Corporation scam
BENGALURU: The Central Bureau of Investigation (CBI) searched 16 locations in Karnataka and Andhra Pradesh in relation to the multi-crore Valmiki Corporation scam.
The case involves misappropriation of government money from the bank accounts of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), a state undertaking, to the personal accounts of the then Minister for Scheduled Tribe Welfare, B Nagendra’s, associates and relatives.
The case was filed on June 3, 2024, on a complaint made by Union Bank of India’s Deputy General Manager alleging fraudulent transactions and embezzlement of Rs 84.63 crore between February 21 and May 6, 2024.
Since November 2024, the Karnataka High Court has been keeping track of the probe after MLA Basangouda R Patil moved a writ petition, ordering CBI to provide interim status reports.
In the investigation, the officials found more diversion of money that belonged to the Karnataka German Technical Training Institute (KGTTI) and the Scheduled Tribes Welfare Department, taking the diverted sum to over Rs 87 crore.
The agency found that Rs 2.17 crore belonging to the ST Welfare Department was passed through intermediary companies like SKR Infrastructure and Golden Establishment to Dhanalaxmi Enterprises, which is owned by close associate Nekkanti Nagaraj. From there, approximately Rs 1.20 crore was routed into the accounts of associates and relatives of the then-minister, including his sister B Sharada, brother-in-law D Bharani Prasad, and personal assistant K Vishwanath. Money also found its way into the family members of Nagaraj, including his brother N Ravikumar and nephew N Yashwanth Chowdhry.
In the same manner, Rs 64 lakh of KGTTI was syphoned off from its Canara Bank account in Bengaluru through parties like Sadguru Education Trust, Sadguru Solutions and Skillpoint Training, ultimately into accounts linked with Nagaraj’s family members.
The High Court had previously allowed the CBI to increase the ambit of its probe covering these disclosures. With raids at more than one location and incriminating material hinting at a group of family members and close relatives, the case has turned out to be one of the biggest financial scams in recent history.
