In a major setback for Karnataka chief minister Siddaramaiah-led Congress government, the Karnataka High Court on Tuesday ordered a CBI probe into the Valmiki ST Development Corporation scam. The court directed the Special Investigation Team (SIT) to hand over all investigation records to the CBI, expanding the scope of the probe.
The petitioners had urged the court to direct a central agency probe, alleging misappropriation and misuse of funds in the state-run body tasked with Scheduled Tribe development.
Until now, the CBI’s involvement was limited to specific irregularities related to the scam, but the high court has now mandated a full-scale investigation into the entire case.
The alleged scam emerged after corporation accounts superintendent Chandrasekharan P was found dead on May 21, 2024. His suicide note alleged an unauthorised transfer of Rs 187 crore from the corporation, with Rs 88.62 crore illegally deposited into IT company accounts and a Hyderabad cooperative bank.
Following the incident, two officials were suspended and Karnataka Tribal Welfare and Sports Minister Nagendra resigned, who was later arrested by the ED in connection with the alleged scam.
In June, the Enforcement Directorate (ED) conducted raids at locations linked to Congress MP E Tukaram from Bellary and three Karnataka MLAs in connection with a money laundering probe tied to the alleged Valmiki scam. The raids were in connection with the investigation into the alleged embezzlement of funds from the Karnataka Valmiki Scheduled Tribes Development Corporation Limited (KVSTDCL). The alleged siphoned money was then reportedly used to fund the Lok Sabha election campaign.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
