Karnataka HC hands over Valmiki case probe to CBI

Bengaluru (Karnataka) [India], July 1 : The Karnataka High Court on Tuesday handed over the investigation of the Valmiki case to the Central Bureau of Investigation.
The court has ordered the Special Investigation Team (SIT) appointed by the state government (CID) to transfer all the documents related to the case to the CBI.
The court has directed the CBI to submit a detailed status report.
Earlier in 2024 October, Enforcement Directorate stated that a total of Rs 15 crore of Rs 89.63 crore funds siphoned in the alleged Valmiki scam by former Karnataka Minister Nagendra and his aides was allegedly used "during the 2024 Lok Sabha election expenditures to influence voters" and some significant portion of the amount for personal expenses.
The investigation revealed that on Nagendra's directive, Rs 187 crores from KMVSTDCL accounts were consolidated into a single account at a bank branch in MG Road.
The KMVSTDCL, founded in 2006 and based in Bangalore, is dedicated to improving the socio-economic status of Scheduled Tribes (ST) in Karnataka. It offers welfare schemes such as self-employment loans, microcredit, land purchase assistance, and irrigation facilities. The Corporation is governed by a Board of Directors (BoD) chaired by the Managing Director (MD), with oversight from departments like Social Welfare, Finance, and Planning.
The money laundering case originated from an FIR filed by the Karnataka Police and the CBI, which claims that several crores of rupees were misappropriated from the accounts of the Karnataka Maharshi Valmiki ST Development Corporation (KMVSTDC). These funds were allegedly transferred to "fake accounts" and subsequently laundered through shell companies.