In setback for Siddaramaiah govt, Karnataka HC orders CBI probe into Valmiki Corporation scam

The Karnataka High Court on Tuesday ordered a CBI probe into the Valmiki ST Development Corporation scam, in a major setback for the Chief Minister Siddaramaiah-led Congress government.

Until now, the CBI’s involvement was limited to specific irregularities related to the scam, but the high court has now mandated a full-scale investigation into the entire case.

The court directed the Special Investigation Team (SIT) to hand over all investigation records to the CBI, expanding the scope of the probe.

The case involves serious allegations of embezzlement of funds earmarked for the welfare of tribal communities.

In June, the Enforcement Directorate (ED) conducted raids at locations linked to Congress MP E Tukaram from Bellary and three Karnataka MLAs in connection with a money laundering probe tied to the alleged Valmiki scam.

Investigators believe that substantial amounts were illicitly withdrawn from the Corporation's accounts and funneled into bogus bank accounts, before being laundered through shell companies.

The ED has also alleged that a portion of the transferred funds was used in the Bellary constituency during the 2024 Lok Sabha elections.

Founded in 2006, the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation was established to implement developmental schemes aimed at improving the socio-economic conditions of Scheduled Tribe communities in the state.

The ongoing investigation builds on earlier FIRs lodged by both the Karnataka Police and the CBI, focusing on the suspected misuse of public funds meant for these welfare initiatives.

(With PTI inputs)