Karnataka BJP Seeks Nagendra’s Ouster From Cabinet Over Valmiki Corporation Scam Allegations

The Karnataka BJP on Sunday urged Chief Minister D K Shivakumar to remove Minister B Nagendra from the Cabinet over allegations of financial irregularities involving crores of rupees in the state-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.

The opposition party warned that it would raise the issue both inside and outside the legislature when the monsoon session begins on August 13.

Nagendra, who had resigned from the previous Siddaramaiah-led Cabinet after the alleged fund diversion surfaced, was inducted into the D K Shivakumar-led Ministry on August 3.

The controversy dates back to 2024. According to investigators and court records, ₹94.73 crore was allegedly diverted through 18 transfers between March 5 and May 6, 2024, with funds routed through primary bank accounts in Telangana and Andhra Pradesh before being moved through several other accounts.

The alleged irregularities came to light in late May 2024 after corporation official P Chandrasekhar flagged the suspected diversion of funds. Chandrasekhar died by suicide on May 26, 2024, and reportedly left behind a note referring to financial irregularities in the corporation, triggering wider scrutiny and subsequent investigations.

"There are serious allegations against Nagendra, and a charge sheet has been filed against him," state BJP president B Y Vijayendra told reporters in Kolar.

Vijayendra alleged that money meant for the welfare and development of the Scheduled Tribes community had been siphoned off and misused, and criticised the Congress government for bringing Nagendra back into the Cabinet while the case remained before the courts.

"When the session begins, we will fight on this issue in the House. He should be dropped from the Cabinet, and we will fight on this issue both inside and outside the Assembly," he said.

The Enforcement Directorate arrested Nagendra in July 2024 in connection with the Valmiki Corporation case. A special court in Bengaluru granted him bail in October 2024.

Responding to reports that agencies were gathering information about Nagendra's travel to New Delhi and whether it amounted to a violation of his bail conditions, Vijayendra said the court would take necessary action if any breach was established.

Leader of Opposition in the Legislative Council Chalavadi Narayanaswamy also demanded that the Chief Minister immediately seek Nagendra's resignation, warning that the BJP would launch a major protest if he continued in office.

Narayanaswamy alleged that Nagendra had travelled to New Delhi twice despite restrictions linked to his bail and called for strict legal action if any violation was proved.

With the legislature session beginning on August 13, the Valmiki Corporation case is expected to become a major political flashpoint between the ruling Congress and the opposition BJP.