Former Karnataka minister B Nagendra.
Credit: DH Photo
Bengaluru: The High Court of Karnataka on Thursday ordered a notice to former minister B Nagendra on the CBI’s petition for cancellation of his anticipatory bail.
On January 14, 2026, the special court for cases involving MP/MLAs granted him anticipatory bail in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation scam.
On June 3, 2024, the CBI registered the FIR for offences under IPC sections 120B, 409, 420, 467 and 468 and Section 13(1)(a) of the Prevention of Corruption Act. The FIR was based on the complaint filed by the Deputy General Manager, Union Bank of India, Regional Head of Bengaluru, alleging misappropriation of funds by illegally transferring/withdrawing Rs 89.63 crore from the corporation’s accounts between February 21 and May 21, 2024.
The CBI stated that as the Minister of Scheduled Tribes Welfare between May 2023 and June 2024, Nagendra was instrumental in transferring Rs 187 crore from other bank accounts of the corporation to the Union Bank of India, MG Road branch in Bengaluru.
He then siphoned off Rs 89.63 crore by utilising 18 fictitious bank accounts.
The CBI submitted that Nagendra’s role had resurfaced when the agency probed the fund diversion from the corporation and the Karnataka German Technical Training Institute (KGTTI).
It also claimed that Nagendra had received illegal gratification for awarding the skill development tender to SKR Infrastructures.
After the tender, Rs 5.17 crore was transferred to the accounts of persons connected to Nagendra and later transferred to the bank accounts of Nagendra’s relatives and his private secretaries, the CBI said.
Custodial interrogation
Similarly, Nagendra favoured Sadguru Solutions and Sadguru Education Trust in allotting the skill development works at Nomadic Tribal Development Corporation through KGTTI and received illegal gratification, the CBI stated, adding that these aspects require his custodial interrogation and confrontation with vital investigation materials as the magnitude of the crime is far reaching.
According to the CBI, Nagendra had been unresponsive, uncooperative and made false and frivolous contentions during the investigation. It also contended that the special court granted him anticipatory bail without taking note of these investigation materials.
The CBI further submitted that the investigation is being monitored by the high court and that the agency is probing a larger conspiracy in the case, including serious economic and corruption offences.