CBI Raids Expose More Twists in Karnataka’s Valmiki Tribal Welfare Scam
Bengaluru’s big money scandal just got bigger. On Monday, the Central Bureau of Investigation (CBI) swooped down on 16 locations across Karnataka and Andhra Pradesh, digging deeper into the shocking Valmiki Tribal Corporation scam. This case already landed former Karnataka minister B. Nagendra behind bars for allegedly siphoning off government funds meant for tribal welfare.
CBI teams targeted the homes, offices, and properties of Nagendra’s close family and associates. They hit spots linked to his sister Sharada, brother-in-law D. Bharani Prasad, personal assistant K. Vishwanath, and others like Nekkanti Nagaraj—a key associate and owner of Dhanalaxmi Enterprises. The raids also covered N. Ravikumar (Nagaraj’s brother), his nephew, and N. Yashwanth Chowdhry. These searches aim to uncover how public money vanished into private pockets.
What did they find? Incriminating documents, property deeds, bank statements, and even details of fancy vehicles bought with scam proceeds. It’s all part of the ongoing probe into the tribal welfare board scam, where crores of rupees disappeared.
The scam first blew open on June 3, 2024, after a complaint from a Deputy General Manager at Union Bank of India. It accuses fraudsters of cheating, forging documents, and illegally transferring Rs 84.63 crore from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL)—a state-run body for tribal development. The shady deals happened between February 21 and May 6, 2024, at the bank’s MG Road branch in Bengaluru.
The Karnataka High Court is keeping a close eye on the Valmiki scam investigation. CBI has already submitted four status reports, and the court even greenlit probes into extra fund diversions from the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI).
Digging deeper, investigators uncovered more fraud in 2024. They found Rs 2.17 crore from the ST Welfare Department—under Nagendra’s ministry—moved from a Bank of Baroda account in Bengaluru. The money flowed through fake firms straight to a private company owned by one of Nagendra’s buddies. From there, about Rs 1.20 crore landed in accounts tied to his sister, brother-in-law, and PA. Some cash even went to the owner of a farmhouse in Ballari, a spot Nagendra reportedly used as a hideout.
That’s not all. Another Rs 64 lakh from KGTTI’s Canara Bank account in Wilson Garden, Bengaluru, got rerouted to the brother and nephew of Nagendra’s associate via middlemen. It’s a web of corruption hitting funds meant to uplift tribal communities and skill training programs.
CBI officials say the investigation into this Karnataka tribal welfare scam is still underway, with more revelations likely on the way. Stay tuned as this story unfolds—could there be more arrests in the Valmiki Corporation fraud?
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