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Bengaluru: The Central Bureau of Investigation (CBI) on Monday said that it has unearthed more illegal diversion of government funds in Karnataka when investigating the alleged scam in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL).
According to the CBI, further instances of diversion of Government funds belonging to the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI) were established during their probe.
The ST Welfare Department falls under the administrative control of the Scheduled Tribe Welfare Ministry, whose minister at the relevant time was B Nagendra, the agency said.
Nagendra resigned last year before his arrest by the Enforcement Directorate (ED), which is also probing the allegations came forth following the corporation’s accounts superintendent Chandrashekhar P death by suicide on May 26 at his Shivamogga residence. The Karnataka government also set up a Special Investigation Team (SIT)
“Investigation revealed that Rs 2.17 crore of ST Welfare Department funds were transferred from the account maintained with Bank of Baroda, Siddaiah Road Branch, Bengaluru, through intermediary firms such as M/s SKR Infrastructure and M/s Golden Establishment, into the account of M/s Dhanalaxmi Enterprises belonging to Nekkanti Nagaraj, a close associate of B Nagendra. Out of these funds, approximately Rs 1.20 crore were further routed into the accounts of the associates and relatives of the then minister B Nagendra, including his sister, brother-in-law, and personal assistant,” the CBI alleged.
The agency said that funds were also transferred to the owner of a farm house in Bellary where the then minister used to stay.
“Similarly, Rs 64 lakh belonging to KGTTI were diverted from its account at Canara Bank, Wilson Garden (Hombegowdanagar) Branch, Bengaluru, to M/s Sadguru Education Trust and M/s Sadguru Solutions, thereafter to M/s Skillpoint Training, and ultimately to entities such as M/s Style Machine, before reaching N Ravikumar (brother of Nekkanti Nagaraj) and N Yashwanth Chowdhry (nephew of Nekkanti Nagaraj),” it added.
The Central agency raided 16 places in Karnataka and Andhra Pradesh on Monday linked to Nagendra’s sister B Sharada, brother-in-law D Bharani Prasad, personal assistant K Vishwanath and other close associates - Nekkanti Nagaraj, his brother N Ravi Kumar and nephew N Yashwanth Chowdhry - resulting in the recovery of incriminating documents, property deeds, bank statements, and also details of vehicles suspected to have been acquired from the proceeds of crime.
The CBI registered the case on June 3, 2024, based on a written complaint from DGM, Union Bank of India, on alleged cheating, forgery, and criminal misappropriation of funds amounting to Rs 84.63 crores through illegal transfer/withdrawal from the accounts of KMVSTDCL between February 21, 2024 and May 6, 2024.
“On November 16, 2024, writ Petition No. 31101/2024 was filed by Basangouda R Patil, MLA, before the High Court of Karnataka, praying for directions to CBI to file a Final Report before the Court, and to submit interim status reports during the pendency of the petition. Since then, the High Court has been monitoring the investigation. Four status reports have so far been filed by CBI before the High Court. Based on the status report submitted by CBI, the High Court had earlier granted permission to investigate,” the CBI said.