<p>Bengaluru: The Central Bureau of Investigation (CBI) has claimed to have discovered instances of new fund diversions in the Shri Maharshi Valmiki Scheduled Tribes Development Corporation scam case. </p><p>The <a href="https://www.deccanherald.com/tags/karnataka-high-court">Karnataka High Court </a>in its interim order permitted the CBI to investigate these instances and obtain documents from various agencies, including the CID, ED, CFSL, and SFSL, apart from the concerned court.</p>.In setback for Siddaramaiah govt, Karnataka HC orders CBI probe into Valmiki Corporation scam.<p>Justice M Nagaprasanna had passed this order on July 1, 2025, while allowing the interlocutory application (IA) by the CBI, filed in a pending petition from expelled BJP MLA Basanagouda Patil Yatnal and other BJP legislators requesting the court to monitor the CBI investigation in the case.</p><p>In its IA, the CBI sought authorisation to investigate fund diversions from the Valmiki Corporation to the Karnataka German Technical Training Institute (KGTTI) at Canara Bank. The CBI stated that its investigations revealed that Rs 95 lakh was diverted from KGTTI's Canara Bank account to Nekkanti Nagaraj, accused in the case, through intermediaries. This apart, Rs 2.17 crore from the Scheduled Tribes Welfare Department was transferred to Nagaraj through the Corporation’s Bank of Baroda account.</p><p>The CBI stated that its investigation has reached an advanced stage, and is intending to file a final report under CrPC Section 173 against the public servants involved in the case and also against other accused. The probe has established prima facie evidence of public servants collaborating with other accused persons, the CBI said.</p><p>As per the status report submitted by the CBI, from time to time before the high court, Rs 89.63 crore was diverted from KMVSTDCL accounts to numerous beneficiary accounts. The latest status report of investigation in this regard was placed before the court on June 20, 2025. These funds subsequently converted into cash, bullion and luxury vehicles, the CBI stated. </p><p>The case involves extensive financial irregularities, including fund diversions through over 700 bank accounts, financial instrument manipulation and forgery, the agency stated.</p>
<p>Bengaluru: The Central Bureau of Investigation (CBI) has claimed to have discovered instances of new fund diversions in the Shri Maharshi Valmiki Scheduled Tribes Development Corporation scam case. </p><p>The <a href="https://www.deccanherald.com/tags/karnataka-high-court">Karnataka High Court </a>in its interim order permitted the CBI to investigate these instances and obtain documents from various agencies, including the CID, ED, CFSL, and SFSL, apart from the concerned court.</p>.In setback for Siddaramaiah govt, Karnataka HC orders CBI probe into Valmiki Corporation scam.<p>Justice M Nagaprasanna had passed this order on July 1, 2025, while allowing the interlocutory application (IA) by the CBI, filed in a pending petition from expelled BJP MLA Basanagouda Patil Yatnal and other BJP legislators requesting the court to monitor the CBI investigation in the case.</p><p>In its IA, the CBI sought authorisation to investigate fund diversions from the Valmiki Corporation to the Karnataka German Technical Training Institute (KGTTI) at Canara Bank. The CBI stated that its investigations revealed that Rs 95 lakh was diverted from KGTTI's Canara Bank account to Nekkanti Nagaraj, accused in the case, through intermediaries. This apart, Rs 2.17 crore from the Scheduled Tribes Welfare Department was transferred to Nagaraj through the Corporation’s Bank of Baroda account.</p><p>The CBI stated that its investigation has reached an advanced stage, and is intending to file a final report under CrPC Section 173 against the public servants involved in the case and also against other accused. The probe has established prima facie evidence of public servants collaborating with other accused persons, the CBI said.</p><p>As per the status report submitted by the CBI, from time to time before the high court, Rs 89.63 crore was diverted from KMVSTDCL accounts to numerous beneficiary accounts. The latest status report of investigation in this regard was placed before the court on June 20, 2025. These funds subsequently converted into cash, bullion and luxury vehicles, the CBI stated. </p><p>The case involves extensive financial irregularities, including fund diversions through over 700 bank accounts, financial instrument manipulation and forgery, the agency stated.</p>