Daijiworld Media Network – Bengaluru
Bengaluru, Jun 3: The Central Bureau of Investigation (CBI) has formally filed chargesheets against 30 individuals, including former scheduled tribes welfare minister B Nagendra, for their alleged involvement in a massive fund misappropriation scam.
The chargesheets, submitted before a competent court on Tuesday, detail widespread financial irregularities within the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), the ST welfare department, and the Karnataka German Technical Training Institute (KGTTI). According to the CBI, Nagendra has been named as an accused in all three distinct chargesheets filed by the central agency.
The conspiracy and modus operandi
The investigation uncovered a meticulously planned operation allegedly spearheaded by Nagendra, his close associate Nekkanti Nagaraj, and KMVSTDCL managing director Padmanabha J G.
Key elements of the fraud include:
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Fabricated accounts: Hyderabad-based Satyanarayana Varma, who previously executed a similar fraud in Chhattisgarh, conspired with Etakari Satyanarayan to open 18 bogus bank accounts using fake KYC documents and forged registration certificates.
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Forgery and diversion: The managing director and accounts officer (AO) of KMVSTDCL reportedly shared sensitive banking information and specimen signatures. Using forged rubber stamps created by a graphic designer in Hyderabad, the accused manipulated banking transactions.
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Fund layering: After pooling approximately Rs 187 crore into the corporation's Union Bank of India (UBI) account, Rs 89.63 crore was illicitly diverted via forged cheques and RTGS transfers.
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Conversion of assets: The diverted funds were layered through nearly 600 bank accounts before being converted into cash, bullion, and luxury vehicles for the accused.
The CBI noted that Nagendra was the direct beneficiary of a benami vehicle purchased with these diverted funds, while Nagaraj and his relatives received substantial portions of the defrauded cash.
High Court intervention and bank complicity
The case originally stemmed from a complaint lodged by the Union Bank of India against three officials at its MG Road branch in Bengaluru, who are accused of violating banking norms to actively facilitate these fraudulent transactions.
Under regular monitoring by the Karnataka High Court, the probe was expanded on July 1 to include the ST welfare department and KGTTI after further irregularities surfaced during the initial investigation.
Illegal tenders and ministerial kickbacks
The CBI's expanded investigation revealed additional layers of corruption tied to government contracts:
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Infrastructure tenders: During 2023-24, contracts worth Rs 13.95 crore for smart computer labs and roti-making machines were awarded to SKR Infrastructure, a firm linked to Nagaraj's associate K Srinivas Reddy.
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Routing of bribes: Nagendra allegedly received Rs 1.20 crore in illegal gratification, which was routed through Nagaraj into the accounts of the minister's sister, brother-in-law, personal assistant, and a farmhouse owner in Ballari. Nagaraj personally pocketed Rs 5.72 crore from this deal.
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Skill development scam: A Rs 4.90 crore training contract awarded to KGTTI was illegally sub-contracted—without any tender process—to Sadguru Education Trust and subsequently to Skillpoint Training & Services in Guntur. This generated Rs 64 lakh in kickbacks for Nagaraj's family and Rs 15.50 lakh for ST welfare secretariat section officer Prakash N.