Another Scam In Karnataka's Valmiki Corporation? BJP Alleges Loan Fraud Worth Crores

Last Updated:June 27, 2025, 15:11 IST

The BJP has accused corporation officials of siphoning off crores by disbursing loans in the names of unsuspecting beneficiaries and then withdrawing the same using fake accounts.

BJP leader Bangaru Hanumantu claims that hundreds of Valmiki community youths from Tumakuru, who applied for self-employment loans in 2019-20, never received them. (File Image)

The Valmiki Development Corporation, already under scrutiny for a multi-crore scam, now faces fresh allegations of widespread irregularities involving fraudulent loans. The BJP has accused corporation officials of siphoning off crores by disbursing loans in the names of unsuspecting beneficiaries and then withdrawing the same using fake accounts.

BJP leader Bangaru Hanumantu claims that hundreds of Valmiki community youths from Tumakuru, who applied for self-employment loans in 2019-20, never received them. When they reapplied in 2024-25, they were informed that loans had already been sanctioned in their names. Hanumantu alleges that officials forged signatures and withdrew Rs 2 lakh per beneficiary from a Bank of Maharashtra account in Kolar. In Tumakuru alone, 120 such cases have been reported, and similar instances are suspected in other districts.

Hanumantu stated, “When we searched the documents, we noticed that Rs 2 lakh loans to different youngsters in Tumakuru and Pavagada were sanctioned and, through bogus accounts and signatures, were withdrawn from a Bank of Maharashtra account in Kolar."

Vijaya Shankar Nayak, a Valmiki community member from Tumakuru, supported these claims, stating that none of the money was transferred to the applicants’ personal accounts. Instead, all the funds were transferred to a Bank of Maharashtra account in Kolar. Nayak added, “These individuals did not sign for the transfer; the officials forged their signatures. These people sign in Kannada, but the signatures for individuals like Maruti and Shashi were in English."

The BJP has demanded immediate action against those responsible and has urged the Chief Minister to take accountability for these alleged fraudulent activities within the corporation.

The Valmiki Scam

Earlier this month, the Enforcement Directorate had conducted searches against Congress’s Bellary MP E Tukaram and three MLAs in Karnataka as part of a money laundering probe into the alleged Valmiki scam.

It was learnt that the premises linked to Tukaram and the three MLAs were searched under the provisions of the Prevention of Money Laundering Act (PMLA). The three leaders being investigated by the investigative agency are: NT Srinivas, NB Reddy and JN Ganesh.

It is alleged that the money was withdrawn from the Karnataka Valmiki Scheduled Tribe Development Corporation funds and was spent in the Lok Sabha elections. The ED alleged that the cash siphoned from the Valmiki funds was used in Bellary constituency during the 2024 Lok Sabha elections.

Harish Upadhya

Harish Upadhya, an Assistant Editor at CNN-News18, reports from Bengaluru. Political reporting is his forte. He also tracks India's space journey, and is passionate about environmental reporting and RTI investi...Read More

Harish Upadhya, an Assistant Editor at CNN-News18, reports from Bengaluru. Political reporting is his forte. He also tracks India's space journey, and is passionate about environmental reporting and RTI investi...

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