In the ongoing investigation into the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation scam, the Special Investigation Team (SIT) has filed a preliminary charge sheet, detailing the arrest of 12 individuals and the recovery of assets and cash amounting to over ₹49.96 crore.
In an official press release, SIT disclosed that it has registered eight cases , leading to the seizure of substantial cash and assets. The preliminary charge sheet, which consists of seven volumes and 3,072 pages, has been filed under High Grounds Police Station Case No. 118/2024. The accused face charges under several sections of the Indian Penal Code (IPC), including 120(B) for criminal conspiracy, 406 for criminal breach of trust, 409 for criminal breach of trust by a public servant, 420 for cheating, and 465, 468, 471 for forgery-related offences.
“The Investigating Officer of the Special Investigation Team has filed a preliminary charge sheet containing seven volumes and 3,072 pages in High Grounds Police Station Case No. 118/2024 against the above-accused persons u/s 120(B), 406, 409, 420, 465, 468, 471 IPC in the Hon’ble 3rd ACMM Court, Bengaluru and further investigation is continued,” read the press note.
According to the charge sheet, the investigation has uncovered the involvement of several high-profile figures in the scam. Among those arrested are JG Padmanabha, the ex-Managing Director of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, and Parashuram Durgannanavar, the ex-Accounts Officer of the same corporation. Sathyanarayana Etakari, Chairman of the First Finance Credit Co-Operative Society Limited, and Nekkunte Nagaraj, an associate of former state minister Nagendra, have also been taken into custody. Nageshwar Rao, the brother-in-law of Nekkunte Nagaraj, along with individuals from Hyderabad, Shivamogga, Bengaluru, and Andhra Pradesh, have been implicated in the case.
{{/usCountry}}According to the charge sheet, the investigation has uncovered the involvement of several high-profile figures in the scam. Among those arrested are JG Padmanabha, the ex-Managing Director of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, and Parashuram Durgannanavar, the ex-Accounts Officer of the same corporation. Sathyanarayana Etakari, Chairman of the First Finance Credit Co-Operative Society Limited, and Nekkunte Nagaraj, an associate of former state minister Nagendra, have also been taken into custody. Nageshwar Rao, the brother-in-law of Nekkunte Nagaraj, along with individuals from Hyderabad, Shivamogga, Bengaluru, and Andhra Pradesh, have been implicated in the case.
{{/usCountry}}SIT’s investigation revealed that out of the ₹187.33 crore involved in the scam, ₹88.63 crore was illegally transferred to at least 217 different bank accounts, including those belonging to 18 firms in Telangana. This money was allegedly diverted from accounts within the government treasury to the Union Bank of India’s MG Road branch in Bengaluru. Among the assets seized by SIT are ₹6.83 crore in cash, 16.2546 kg of gold valued at ₹11.70 crore, cars worth ₹4.51 crore, and an account officer’s bank balance of ₹3.19 crore. Additionally, frozen accounts contained ₹13.72 crore.
The scam initially came to light following the suicide of the corporation’s accounts superintendent. In their suicide note, the victim detailed the fraudulent transfer of funds and the involvement of corporation and bank officials.
The situation escalated when opposition parties, BJP and JD(S), demanded the resignation of Chief Minister Siddaramaiah, alleging that he knew of the scam. This scandal has already resulted in the resignation of Minister B Nagendra, who is currently under investigation by the Enforcement Directorate (ED) and is in judicial custody.
However, the SIT charge sheet doesn’t mention the minister.
The opposition has accused the government of complicity, alleging that such a massive transfer of funds could not have occurred without the Chief Minister’s awareness. In response, Chief Minister Siddaramaiah has dismissed these allegations, maintaining that he had no prior information about the scam.
Karnataka Home Minister G Parameshwara on Monday said that the Congress is prepared to fight a legal battle if Governor Thawar Chand Gehlot gives consent for an investigation against Chief Minister Siddaramaiah.
“If the Governor gives consent to investigate the Chief Minister then Congress is prepared to fight a legal battle. We have confidence that the Governor will accept the decision of the council of ministers. The notice given to the Chief Minister should be withdrawn,” he said.
The controversy surrounds a complaint filed by activist TJ Abraham, seeking sanction for prosecution against Siddaramaiah on Friday. The government responded to the complaint, but the governor issued a notice shortly after receiving a report from the chief secretary on Friday itself.
Talking about the case, BJP state president BY Vijayendra said: “This CM has become a puppet in the hands of Congress’s high command. Karnataka has become an ATM for the Congress party and the Gandhi family. So we are fighting this and we want this corrupt CM to be removed.”