Bengaluru, Sep 15 In a major development, the Central Bureau of Investigation (CBI) has conducted raids on Monday at 16 locations in Karnataka and Andhra Pradesh in connection with sensational tribal welfare board scam in which former minister B. Nagendra was jailed.
An official statement CBI stated: "The raids were conducted at premises of sister, brother-in-law, personal assistant and other close associates of former Karnataka minister in connection with siphoning of government funds."
CBI sources confirmed that, Sharada, sister, D. Bharani Prasad, brother-in-law, Personal Assistant K. Vishwanath, Nekkanti Nagaraj, a close associate of former minister of the Scheduled Tribe Welfare Ministry B. Nagendra and owner of a private company Dhanalaxmi Enterprises, N. Ravikumar brother of Nekkanti Nagaraj and nephew of Nekkanti Nagaraj, N. Yashwanth Chowdhry's properties, offices and residences were raided by the CBI.
According to the CBI statement, it carried out searches, at 16 places in Karnataka and Andhra Pradesh in connection with Valmiki Tribal Corporation scam, relating to siphoning of government funds.
Searches conducted at the premises of sister, brother-in-law, PA and other close associates of the then Karnataka minister 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 was registered on June 3, 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 crore through illegal transfer/withdrawal from the accounts of 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 Feb 21, 2024 to May 6, 2024, the CBI stated.
The High Court of Karnataka has been monitoring the investigation. Four status reports have so far been filed by CBI before the High Court, according to the statement.
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, High Court of Karnataka had granted permission to CBI to also investigate into the above allegations, the CBI stated.
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, the CBI said.
Out of these funds, approximately Rs 1.20 crore was 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 Ballary where the then minister used to stay, the CBI stated.
Similarly, Rs 64 lakh 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 former minister, through certain intermediaries, the CBI statement said.
Investigation of the case is in progress, an official said.
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