The Central Bureau of Investigation (CBI) on Monday conducted searches at 16 locations across Karnataka and Andhra Pradesh in connection with the alleged siphoning off government funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development
The raids were carried out at the residences and offices of the sister, brother-in-law, personal assistant, and other close associates of the then Karnataka Minister, B Nagendra.
Officials said the searches led to the recovery of incriminating documents, property deeds, bank statements, and details of vehicles suspected to have been purchased using the proceeds of crime.
Founded in 2006, the Valmiki Corporation was established to implement developmental schemes aimed at improving the socio-economic conditions of Scheduled Tribe communities in the state.
The case was registered on June 3 last year, following a complaint by the Deputy General Manager of Union Bank of India.
The complaint alleged that funds worth Rs 84.63 crore were misappropriated between February and May 2024 through illegal transfers and withdrawals from KMVSTDCL's account with Union Bank of India, MG Road Branch, Bengaluru.
The Karnataka High Court has been monitoring the probe, and CBI has so far submitted four status reports.
During the course of investigation, the agency unearthed further diversion of funds belonging to the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI).
The CBI alleged that Rs 2.17 crore from the ST Welfare Department was routed through intermediary firms into the account of a private company linked to a close aide of the minister, with around Rs 1.20 crore eventually reaching the minister's relatives and personal assistant.
Funds were also traced to the owner of a farmhouse in Bellary frequently used by the minister.
Similarly, about Rs 64 lakh from KGTTI accounts were allegedly diverted into the accounts of relatives of the minister's associate through intermediaries.
The CBI confirmed that the investigation into the case is ongoing.
