Chalavadi Narayanaswamy, Leader of the Opposition in the Karnataka Legislative Council and a prominent Dalit leader from the Bharatiya Janata Party (BJP), on 19 August sharply rebuked Planning and Statistics Minister B. Nagendra, saying the minister had no right to invoke his Dalit identity to deflect corruption charges linked to the alleged ₹187-crore irregularity in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. Speaking to reporters in Bengaluru, Narayanaswamy warned that the BJP would escalate its statewide agitation unless Nagendra resigned from the Cabinet.

The Corruption Charge at the Centre

The controversy stems from allegations that ₹187 crore was transferred out of the Valmiki Corporation without a Board meeting and without the knowledge of either the minister or the Corporation chairman, according to Nagendra's own account. Former Chief Minister Siddaramaiah had earlier acknowledged that around ₹89 crore was misappropriated, while the broader controversy involves the full ₹187 crore transferred from the Corporation. A Special Investigation Team (SIT) was constituted on 31 May 2024 after the death of Corporation accounts superintendent P. Chandrashekhar.

Narayanaswamy noted that Nagendra had previously been dropped from the Cabinet when the allegations first surfaced, only to be reinstated despite the case remaining sub judice. 'The police department has still not filed a complete chargesheet. Despite this, a case is pending against him. He is not fit to continue in the Cabinet,' Narayanaswamy said.

BJP's Rebuttal to the 'Manuvadi' Charge

Minister Nagendra had earlier, at a separate press conference in Bengaluru, alleged that 'Manuvadis are conspiring to somehow remove us from the Cabinet and push us out of office.' He maintained that the ₹187 crore was transferred by officials without his knowledge or the required financial approval, and that not a single rupee had reached his account or any account connected to him.

Narayanaswamy — himself a Dalit leader — directly challenged that framing. 'Who is Valmiki? Whose is the Valmiki Corporation? If you belong to the Valmiki community and the money meant to reach that community was allegedly looted, how can you say that you are being targeted because you belong to the community?' he asked. He argued that invoking caste identity in a case involving funds earmarked for the same community was indefensible.

What Has Been Recovered So Far

According to Nagendra, of the ₹187 crore transferred, ₹100 crore was frozen immediately after the irregularity came to light. The remaining ₹87 crore was routed through Union Bank of India to Hyderabad and subsequently distributed across approximately 800 accounts. Investigators have reportedly traced the transactions and recovered around ₹79 crore so far, with the rest either recovered or in the process of being recovered.

Narayanaswamy dismissed the recovery argument as irrelevant to the question of culpability. 'If someone steals something and later returns the stolen property, does that make the person innocent? That is the question,' he said.

BJP's Demand and Next Steps

The BJP has rejected the ruling government's suggestion that the Opposition participate in an Assembly discussion on the matter. 'What will happen if we discuss it? Will ₹187 crore become ₹50 crore? The amount will remain the same,' Narayanaswamy said. He also argued that Nagendra should have resigned voluntarily rather than waiting for Opposition pressure. 'If I had done something wrong, I would not wait for someone else to ask me to resign,' he said.

The BJP has vowed to continue its agitation and threatened a statewide protest if Nagendra does not step down. The case remains before the court, with the chargesheet still incomplete, keeping the political and legal pressure on the Karnataka government firmly in place.