Karnataka High Court orders CBI probe into Valmiki Corporation irregularities

The Karnataka High Court has ordered an investigation by the Central Bureau of Investigation (CBI) into alleged irregularities within the Valmiki Development Corporation. The decision was delivered by Justice M Nagaprasanna following a petition filed by BJP leaders Basanagouda Patil Yatnal, Aravind Limbavali, and others.

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.

In its order, the High Court directed the Special Investigation Team (SIT), which was initially probing the case, to hand over all related records to the CBI. The bench noted that the scope of the CBI probe would not be limited merely to previously identified lapses but would encompass a broader inquiry into the corporation’s functioning and financial dealings.

The development marks a setback for the Congress-led government in Karnataka, led by Chief Minister Siddaramaiah, as it brings further scrutiny to alleged financial misconduct under its administration.

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.

On June 11, the Enforcement Directorate (ED) had conducted searches at eight locations in Karnataka, linked to Congress leader and Ballari Lok Sabha MP E Tukaram and other Congress leaders and MLAs in the state, sources said.

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.

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