The Enforcement Directorate (ED) has named Karnataka Congress MLA B Nagendra the primary accused and mastermind behind the multi-crore Valmiki Corporation. The agency filed a charge sheet in the case before a special Prevention of Money Laundering Act (PMLA) court in Bengaluru, which has taken cognizance of it.
According to the ED, Nagendra allegedly orchestrated the scam with the help of 24 others, including key associates like Satyanarayana Varma, Etakari Satyanarayana, JG Padmanabha, Nageshwar Rao, Nekkenti Nagaraj, and Vijay Kumar Gowda. The agency's probe alleges that under Nagendra's influence, the Corporation's account was moved to the MG Road Branch without proper authorisation, where Rs 187 crore, including Rs. 43.33 crore from the state treasury under the Ganga Kalyana Scheme , were deposited in violation of government guidelines.
"These funds were subsequently siphoned off through multiple shell accounts and converted into cash and bullion," the ED claimed. The agency also said that Rs 20.19 crore of the diverted funds were used to support a candidate contesting the 2024 Lok Sabha election from the Bellary constituency and for Nagendra's personal expenses. Evidence of these expenditures was found during search operations and corroborated by financial analysis and statements, by the central investigation agency.
The money laundering case originates from an FIR filed by the Karnataka Police and the CBI, alleging that around Rs 89.62 crore were diverted from the Valmiki Corporation's accounts into fake accounts across Andhra Pradesh and Telangana and later laundered through shell entities. The alleged irregularities came to light after the death of Chandrasekharan P, the accounts superintendent of the Corporation, who wrote a suicide note alleging the illegal transfer of money from the Corporation to various bank accounts, including Rs 88.62 crore illegally deposited into accounts of some IT companies and a Hyderabad-based cooperative bank.
According to the ED, Nagendra allegedly orchestrated the scam with the help of 24 others, including key associates like Satyanarayana Varma, Etakari Satyanarayana, JG Padmanabha, Nageshwar Rao, Nekkenti Nagaraj, and Vijay Kumar Gowda. The agency's probe alleges that under Nagendra's influence, the Corporation's account was moved to the MG Road Branch without proper authorisation, where Rs 187 crore, including Rs. 43.33 crore from the state treasury under the Ganga Kalyana Scheme , were deposited in violation of government guidelines.
"These funds were subsequently siphoned off through multiple shell accounts and converted into cash and bullion," the ED claimed. The agency also said that Rs 20.19 crore of the diverted funds were used to support a candidate contesting the 2024 Lok Sabha election from the Bellary constituency and for Nagendra's personal expenses. Evidence of these expenditures was found during search operations and corroborated by financial analysis and statements, by the central investigation agency.
The money laundering case originates from an FIR filed by the Karnataka Police and the CBI, alleging that around Rs 89.62 crore were diverted from the Valmiki Corporation's accounts into fake accounts across Andhra Pradesh and Telangana and later laundered through shell entities. The alleged irregularities came to light after the death of Chandrasekharan P, the accounts superintendent of the Corporation, who wrote a suicide note alleging the illegal transfer of money from the Corporation to various bank accounts, including Rs 88.62 crore illegally deposited into accounts of some IT companies and a Hyderabad-based cooperative bank.
