Valmiki Corporation scam: Former Karnataka minister B Nagendra granted bail by Bengaluru court

Former Karnataka Minister B Nagendra was granted bail on Monday by Special Courts For People's Representatives in Bengaluru. He had resigned following Maharishi Valmiki corporation alleged scam.

On October 10, Enforcement Directorate (ED) named the Karnataka Congress as the primary accused and mastermind behind the multi-crore Valmiki Corporation. The agency filed a charge sheet in the case before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, which has taken cognizance of it.



According to the ED, Nagendra allegedly masterminded the scam with the help of 24 others, including key associates like Satyanarayana Varma, Etakari Satyanarayana, JG Padmanabha, Nageshwar Rao, Nekkenti Nagaraj, and Vijay Kumar Gowda.

The agency's probe alleges that under Nagendra's influence, the Corporation's account was moved to the MG Road Branch without proper authorisation, where Rs 187 crore, including Rs. 43.33 crore from the state treasury under the Ganga Kalyana Scheme, were deposited in violation of government guidelines.


The money laundering case originated from an FIR filed by the Karnataka Police and the CBI, alleging that around Rs 89.62 crore were diverted from the Valmiki Corporation's accounts into fake accounts across Andhra Pradesh and Telangana and later laundered through shell entities.

The alleged irregularities came to light after the death of Chandrasekharan P, the accounts superintendent of the Corporation, who wrote a suicide note alleging the illegal transfer of money from the Corporation to various bank accounts, including Rs 88.62 crore illegally deposited into accounts of some IT companies and a Hyderabad-based cooperative bank.