BJP conspired to destabilise Karnataka government: Nagendra

Nagendra, who was arrested in July, denied any involvement in the financial misappropriations and called the charges politically motivated

Former minister B Nagendra on Wednesday accused the Bharatiya Janata Party (BJP) of conspiring to destabilise the Congress government in Karnataka through the Maharshi Valmiki Scheduled Tribe Development Corporation (MVSTDC) case.

Nagendra had resigned from his ministerial post in June following the onset of the Valmiki corporation case (ANI)

Nagendra, who was arrested in July, denied any involvement in the financial misappropriations and called the charges politically motivated. His conditional bail from Parappana Agrahara Jail, granted by the Court of People’s Representatives on Tuesday, was delayed due to procedural issues at the jail, resulting in his exit earlier this Wednesday morning.

Addressing the media outside the jail, the former Scheduled Caste welfare minister said, “I have not engaged in any wrongdoing in connection with the Valmiki corporation scam. Despite this, I was detained and subjected to harassment by the Enforcement Directorate (ED) officials for three months.”

He further said: “The accusations against me are part of a larger scheme orchestrated by the BJP, and there is no basis for the claims that I was involved in the misappropriation of funds. The BJP leadership has used pressure tactics to name chief minister Siddaramaiah and deputy CM DK Shivakumar as part of their strategy to destabilise our government.”

Pointing out a political agenda behind his arrest, he said: “This scam involved bank officials, not the state government. Yet, they sought to implicate us to create instability.” He also accused the central government of backing efforts to weaken the Congress administration in Karnataka.

Nagendra had resigned from his ministerial post in June following the onset of the Valmiki corporation case. He was taken into custody by the ED on July 12 after a special investigation team (SIT) from the Crime Investigation Department (CID) completed its probe into the case. After 93 days of his arrest by the ED, the court granted Nagendra bail, requiring a ₹2 lakh bond and two sureties. His release ends a three-month stint in jail, but legal proceedings on his alleged role in the scam are still ongoing.

In response to Nagendra’s remarks, BJP state unit media coordinator B Karunakar said: “The ED officials who probed the multi-crore scam confirmed Nagendra is the prime accused in the scam. It is ridiculous that, despite records showing funds transferred to Nagendra’s close aides’ accounts, he is pretending innocence.” He also called for severe punishment for those involved.

Nagendra was taken into custody under the Prevention of Money Laundering Act (PMLA) after the ED initiated an investigation based on allegations of financial misconduct. The case came to light in May when an official of the Valmiki corporation, died by suicide, leaving behind a note alleging misappropriation of welfare funds.

Following the incident, the Karnataka government formed a special investigation team (SIT) to look into the allegations while the ED launched its own inquiry. The ED reported that around ₹90 crore was illegally transferred from the Valmiki corporation’s account to unauthorised accounts.

In June, Nagendra resigned as the Scheduled Tribes Welfare Minister amid growing allegations of his involvement in the Valmiki corporation scam. The ED indicated that Nagendra is the primary accused and the alleged mastermind behind the operation, allegedly orchestrating it with the help of 24 others.

The investigation led to the arrest of Nagendra and five other key suspects. The ED stated, “Under the influence of Nagendra, the account of the corporation was moved to the MG Road Branch without any proper authorisation, where ₹187 crore, including ₹43.33 crore from the State Treasury under the ‘Ganga Kalyana Scheme,’ were deposited without following proper procedures and in violation of government guidelines.”

Additionally, the agency revealed that the diverted funds were siphoned off through various shell accounts, ultimately being converted into cash and bullion. The ED’s findings also claimed that “an amount of ₹20.19 crore of the diverted funds was used to support a candidate contesting the 2024 Lok Sabha election from the Bellary constituency, as well as for the personal expenses of B Nagendra.”