K'taka: CBI files chargesheets against ex-minister, others in fraud case

The Central Bureau of Investigation (CBI) on Tuesday filed three chargesheets in connection with the alleged misappropriation of funds belonging to the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL). According to the agency, the investigation has been completed and three separate chargesheets have been filed before the competent court in relation to fraud involving KMVSTDCL, the Scheduled Tribes Welfare Department and the Karnataka German Technical Training Institute (KGTTI). The CBI said former Karnataka Scheduled Tribes Welfare Minister B. Nagendra has been named as an accused in all three chargesheets. The agency alleged that he played a central role in the conspiracy spanning multiple entities.
The case was initially registered on the basis of a complaint filed by union Bank of India (UBI), which named three officials of its M.G. Road branch in Bengaluru and other unknown persons. The investigation was monitored by the Karnataka High Court through periodic status reports. During the probe, the CBI uncovered alleged fraud involving two other state government entities—the ST Welfare Department and KGTTI.Subsequently, the Karnataka High Court expanded the scope of the investigation on July 1, 2025, to include these entities. According to the agency, the investigation revealed an alleged conspiracy involving Nagendra, his close associate Nekkanti Nagaraj, KMVSTDCL Managing Director Padmanabha J.G., and one Hyderabad-based businessman. The CBI investigation has established the role of 30 persons including the former Minister  B. Nagendra, his close associate Nekkanti Nagaraj, officials of KMVSTDCL, State government officials, Bank officials of UBI (M.G. Road Branch) and IOB (Kukatpally, Hyderabad), and various private individuals and middlemen. 
The CBI alleged that forged documents were used to open 18 bank accounts in the names of fictitious business entities and that fraudulent transactions were carried out using forged signatures and fabricated official seals. According to CBI statement, in 2023-24, tenders worth Rs13.95 crores for Smart Computer Labs and Roti Making Machines were awarded by the ST Welfare Department to M/s SKR Infrastructure, Bengaluru, a firm of  K. Srinivas Reddy who is closely connected to  Nekkanti Nagaraj. Investigation has established that B. Nagendra, Minister, received illegal gratification of Rs1.20 crores through Nagaraj, routed into the accounts of the Minister's sister, brother-in-law, Personal Assistant, and a farmhouse owner at Bellary. Nagaraj himself received Rs5.72 crores from SKR Infrastructure and its sister concerns.

(Freelance Journalist)