New Delhi, 15 Sept

The Central Bureau of Investigation (CBI) has conducted searches at the residence of former State minister B Nagendra and 15 other locations across Karnataka and Andhra Pradesh in connection with the Valmiki Scheduled Tribes Development Corporation scam.

Officials allege that Nagendra and his associates transferred government funds to personal accounts linked to his family.

The complaint originated from the deputy general manager of Union Bank of India, which maintains the Valmiki Corporation's account, claiming misappropriation of over Rs 84 crore between February and May 2024. Initially a bank fraud case against Nagendra, the investigation revealed that funds were allegedly transferred into accounts held by his sister and brother-in-law.

The investigation gained momentum after the Karnataka High Court granted the CBI permission to pursue a comprehensive probe in July, following a petition by MLA Basangouda R Patil.

The CBI has identified multiple instances of diverted funds meant for the Scheduled Tribes Welfare Department, including Rs 2.17 crore allegedly channelled through firms connected to close associates of Nagendra.