The Central Bureau of Investigation (CBI) on Monday (September 15, 2025) raided 16 premises in various parts of Karnataka and Andhra Pradesh in connection with the Valmiki Corporation case. Several associates of former minister B. Nagendra, who resigned in connection with the alleged scam, and alleged beneficiaries of the diverted funds were covered during the raids, but not Mr. Nagendra himself, sources said.
In a statement issued on Monday, CBI has claimed funds from ST Welfare Department, which was then headed by Mr. Nagendra, were illegally transferred and through intermediaries eventually landed in the accounts of associates and relatives of Mr. Nagendra, including his sister, brother-in-law, and personal assistant.
The CBI entered the probe into the scam based on a complaint filed by Union Bank of India, where the Corporation’s account was maintained and funds diverted from. Further, hearing a petition filed by MLA Basanagouda Patil Yatnal, formerly with the BJP, the High Court has been monitoring the probe, CBI said.
Karnataka High Court permits CBI to expand scope of existing investigation in Valmiki corporation fraud case
Recently, in July, 2025, the CBI sought the court’s permission to expand the scope of the probe to include two other instances of alleged illegal fund transfer from Scheduled Tribes Welfare Department of Karnataka, which was headed by Mr. Nagendra, and Karnataka German Technical Training Institute (KGTTI), and was granted the same. The raids on September 15 follows this, sources said.
