CBI raids premises of K' taka ex-minister's associates in Valmiki scam

CBI on Monday carried out searches at 16 places in Karnataka and Andhra Pradesh in connection with Valmiki Corporation scam case relating to siphoning of Govt Funds. Searches conducted at the premises of Sister, Brother-in-Law, PA and other close associates of the then Karnataka Minister  B Nagendra  have resulted in recovery of incriminating documents, property deeds, bank statements, and also details of vehicles suspected to have been acquired from the proceeds of crime.The case involves serious allegations of transferring government funds to personal accounts of Nagendra's relatives from the accounts of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.
The search operation covered the premises of Nagendra's sister B Sharada, brother-in-law D Bharani Prasad, personal assistant K Vishwanath, close associate Nekkanti Nagaraj who is also the owner of Dhanalaxmi Enterprises, Nagaraj's brother, N Ravikumar and Nagaraj's nephew N Yashwanth Chowdhry, the CBI said in response to a media query.
The case was registered on June 03, 2024 by CBI, on the basis of a written complaint from DGM, Union Bank of India. The complaint alleged cheating, forgery, and criminal misappropriation of funds amounting to Rs 84.63 Crores through illegal transfer/withdrawal from the accounts of M/s Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited, (KMVSTDCL), a Government of Karnataka undertaking, also referred as Valmiki Corporation, maintained at Union Bank of India, MG Road Branch, Bengaluru, during the period 21.02.2024 to 06.05.2024. High Court of Karnataka has been monitoring the investigation. Four status reports have so far been filed by CBI before the Hon’ble High Court.
During the course of investigation, further instances of diversion of Government funds during the year 2024, belonging to the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI) have been established. Based on the status report submitted by CBI, The High Court had granted permission to CBI to also investigate into the above allegations.
The ST Welfare Department falls under the administrative control of the Scheduled Tribe Welfare Ministry. Investigation revealed that Rs 2.17 Crores of ST Welfare Department funds were transferred from the account maintained with Bank of Baroda, Siddaiah Road Branch, Bengaluru, through intermediary firms, into the account of a Private Company belonging to a close associate of the then Minister of Scheduled Tribe Welfare Ministry. Out of these funds, approximately Rs 1.20 Crore were further routed into the accounts of Sister, Brother-in-law and Personal Assistant of the then Minister. Funds were also transferred to the owner of a farm house in Bellary where the then minister used to stay. 
Similarly, Rs 64 Lakhs belonging to KGTTI were diverted from its account at Canara Bank, Wilson Garden (Hombegowdanagar) Branch, Bengaluru, into the accounts of Brother and Nephew of close associate of the then Minister, through certain intermediaries.

(Crime Correspondent)