Bengaluru: Karnataka’s Planning and Statistics Minister B. Nagendra resigned Friday after mounting pressure over his alleged involvement in the Rs 187 crore Valmiki Corporation scam.
“Just because I don’t want my party to be embarrassed because of me, today on my own accord, I am giving my resignation to the Chief Minister,” Nagendra said in Bengaluru.
Chief Minister D.K. Shivakumar had vouched for his innocence in all forums, he asserted.
The resignation added to the challenges of Shivakumar’s three-month-old government, which has been under intense scrutiny over Nagendra’s induction into the state cabinet despite the looming threat of the case over the 54-year-old.
This marks the second time Nagendra has been forced to resign over this scam—he previously stepped down in June 2024 while serving as the minister for ST welfare, where he was accused of siphoning off funds meant for tribal welfare.
At that time, the then Chief Minister Siddaramaiah admitted on the floor of the Assembly that financial misappropriation occurred, but that it was only of Rs 89.6 crore. The government has since maintained that nearly Rs 80 crore has been recovered.
Nagendra’s resignation comes as the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) formally approached Karnataka Governor Thaawarchand Gehlot to seek permission to prosecute him.
The Chief Minister’s stoic silence on the issue which had given the opposition ammunition to corner the Congress government. The opposition Bharatiya Janata Party (BJP) and its ally Janata Dal (Secular), or JD(S) relentlessly demanded Nagendra’s resignation and protested for the entire duration of the Monsoon Session of the state legislature.
The BJP had even announced a padayatra (footmarch) across the state against Nagendra.
“One wicket down in the @DKShivakumar Government. The @INCKarnataka Govt is on the back foot and the all-out is only a matter of time. Wait and watch,” BJP’s R. Ashoka, the Leader of the Opposition, posted on X.
One wicket down in the @DKShivakumar Government.
The @INCKarnataka Govt is on the back foot and the all-out is only a matter of time.
Wait and watch.@BJP4India https://t.co/8B6HfTY9jt
— R. Ashoka (@RAshokaBJP) August 28, 2026
The alleged scandal came to light after P. Chandrashekaran, an accounts superintendent at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC), died by suicide 26 May 2024 in Shivamogga district, leaving behind a six-page death note in Kannada purportedly written by him.
It named senior officials of the corporation as well as Union Bank officials for alleged embezzlement of funds from the corporation.
Nagendra was granted bail after spending around three months in jail after multiple cases were lodged against him by the CBI and the ED. The money was allegedly used to fund elections.
In February, the CBI said it completed the investigation into misappropriation of funds and filed a charge sheet the same day.
On Monday, Nagendra, a Dalit, said that he was being targeted by ‘Manuvaadis’ because he is from an oppressed section of society. He claimed the BJP “handpicked” him despite many of their own legislators and leaders being under investigation.
In its statement, the CBI said it has “unearthed a meticulously planned conspiracy” involving Nagendra and his close associates, Nekkanti Nagaraj and Padmanabha J. G, the chief of the Valmiki corporation at the time.
Satyanarayana Varma of Hyderabad, who earlier allegedly executed a similar fraud in Chhattisgarh, played a crucial role in executing the scam, according to the CBI.
“Forged rubber seals/stamps of the MD and AO of KMVSTDCL were fabricated through a graphic designer in Hyderabad and used to execute fraudulent banking transactions. Approximately Rs 187 crore were pooled into KMVSTDCL’s UBI account by the MD and AO,” the CBI statement said.
Rs 89.63 crore was fraudulently diverted through forged cheques and RTGS transactions and the diverted funds were layered through approximately 600 bank accounts and ultimately converted into cash, bullion, and luxury vehicles, it alleged.
The CBI added that in 2023-24, tenders worth Rs 13.95 crore for smart computer labs and roti making machines were awarded by the ST Welfare Department to SKR Infrastructure, which was run by K. Srinivas Reddy who is allegedly connected to Nekkanti Nagaraj.
“Investigation has established that Nagendra received illegal gratification of Rs 1.20 crore through Nagaraj, routed into the accounts of the minister’s sister, brother-in-law, personal assistant, and a farmhouse owner at Bellary. Nagaraj himself received Rs 5.72 crore from SKR Infrastructure and its sister concerns,” it said, adding that the probe unearthed other scams.
The CBI probe has established the role of 30 people including Nagendra, Nekkanti Nagaraj, officials of KMVSTDCL, state government officials, bank officials, among others.
(Edited by Tony Rai)