ED files chargesheet in Valmiki scam

Former Minister B. Nagendra

The Directorate of Enforcement (ED) has filed a chargesheet in the alleged scam at Karnataka Maharshi Valmiki Scheduled Tribes Welfare Corporation Ltd., naming former Minister B. Nagendra as the prime accused. The chargesheet alleges that funds from the Corporation were diverted at Mr. Nagendra’s behest. Basanagouda Daddal, Chairman of the Valmiki Corporation, has not been named as an accused in the chargesheet.

Scale of scam

The chargesheet estimates the scam at ₹89.62 crore, alleging that the funds were diverted to 18 fake accounts in Andhra Pradesh and Telangana. These funds were then layered through fake and shell accounts, with cash and bullion distributed among the accused, according to the ED. The chargesheet, comprising 140 pages of documents, outlines the money trail, sources said.

Of the diverted funds, the ED chargesheet alleges that Mr. Nagendra siphoned off ₹20.19 crore to finance the Lok Sabha elections in his home district of Ballari in April-May 2024. The chargesheet claims that the agency recovered incriminating material, including accounts and charts detailing the distribution of money to polling booths during the elections, from accused number 8, Abhishek Gowda, who served as Mr. Nagendra’s personal assistant.

The chargesheet says this money was part of the total funds diverted from the corporation. Earlier in July, when Mr. Nagendra was arrested, the ED stated that they had “uncovered that a substantial amount of funds were utilised to procure a significant quantity of liquor just prior to the general elections”.

Finance Dept links

The chargesheet also alleges that the Finance Department and the Scheduled Tribes Welfare Department of the Government of Karnataka violated norms and guidelines by allowing the Valmiki Corporation to open a new bank account and transfer the corporation’s funds to that account. Chief Minister Siddaramaiah holds charge of the Finance Department.

The 4,970-page chargesheet, filed on Monday afternoon, names 24 accused, including middleman Satyanarayana Verma and Satyanarayana Itakari, chairman of First Finance Credit Co-operative Society, both from Hyderabad, who were instrumental in laundering the diverted money in neighbouring States. The others include J.J. Padmanabh, former Managing Director; Parashuram, Chief Accounts Officer of the Valmiki Corporation; and Abhishek Gowda, personal assistant to Mr. Nagendra.

The ED has reportedly stated that the investigation is not yet concluded and that they will file supplementary chargesheets as the probe progresses.