Karnataka CM Shivakumar hints at Nagendra exit amid Valmiki scam pressure
Synopsis
Karnataka's Valmiki scam crisis has reached a tipping point: CM Shivakumar has effectively passed the decision on Minister Nagendra's fate to the Congress high command, while Nagendra himself — once arrested by the ED over the ₹89 crore tribal fund diversion — is returning from Delhi to face the cameras. The BJP's 185-km protest march signals this is no longer a cabinet reshuffle story; it is a test of the Congress government's accountability on tribal welfare.
Key Takeaways
Shivakumar on 28 August said Minister B.
Nagendra would address the media directly on resignation reports.
Shivakumar deferred the final decision to the Congress high command , saying 'we have left the matter to the high command.' Nagendra reportedly described himself as a 'disciplined soldier' ready to make 'any sacrifice for the party.' BJP and JD(S) have announced a 185-kilometre protest march demanding his resignation over the alleged tribal welfare scam.
The Maharshi Valmiki scam involves alleged diversion of ₹89 crore from tribal welfare funds; Nagendra was previously arrested by the ED .
The CID has given Nagendra a clean chit, while the SIT , CBI , and ED continue separate investigations.
Karnataka Chief Minister D.K. Shivakumar on Friday, 28 August indicated that Planning and Statistics Minister B. Nagendra was set to address the media directly on reports of his resignation, saying the minister had spoken to him that morning and would 'speak to you' himself. The development comes as the opposition Bharatiya Janata Party (BJP) and Janata Dal (Secular) (JD(S)) intensify pressure over the alleged Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC) financial scam.
What Shivakumar Said
Speaking to reporters at Manekshaw Parade Ground in Bengaluru, CM Shivakumar was deliberately measured in his response. Asked directly whether Nagendra had submitted his resignation, he said: 'He spoke to me in the morning. He will speak to the media directly. He will come and talk to you.'
Shivakumar added that Nagendra had described himself as a 'disciplined soldier' of the Indian National Congress (INC) party, expressing readiness to make 'any sacrifice for the party.' The Chief Minister reiterated that the final decision had been deferred to the party's central leadership — the Congress high command in New Delhi.
Opposition Pressure and Assembly Disruption
The BJP and JD(S) have been running a sustained agitation demanding Nagendra's resignation, even announcing a 185-kilometre protest march to highlight his alleged role in the tribal welfare fund diversion. The controversy had already disrupted the Monsoon Assembly session, with the Speaker adjourning the House sine die abruptly after the BJP announced an overnight protest.
Notably, this is not the first time Nagendra has faced political heat over this case. He had previously resigned and was arrested by the Enforcement Directorate (ED) in connection with the same scam before returning to the Cabinet.
The Valmiki Scam: What Happened
The Maharshi Valmiki scam centres on the alleged illegal diversion of approximately ₹89 crore from welfare accounts of the KMVSTDC, funds earmarked for tribal development. The case gained public attention in May 2024, when a corporation employee, Chandrasekar P., died by suicide, leaving behind a note that reportedly exposed the unauthorised money transfers.
Multiple agencies are currently probing the matter — the Special Investigation Team (SIT), the Central Bureau of Investigation (CBI), and the ED. However, the state government's own Criminal Investigation Department (CID) has reportedly given Nagendra a clean chit, creating a contradictory investigative landscape that has fuelled further political controversy.
What Happens Next
Nagendra was travelling back to Karnataka from Delhi on Friday and was expected to hold a media interaction upon his return. His statement is likely to clarify whether a formal resignation has been submitted and whether the Congress high command has arrived at a decision on his future in the Cabinet. The party's response will also signal how it intends to manage the coalition arithmetic and tribal voter sentiment ahead of upcoming electoral cycles.
Point of View
Not a non-answer. By routing the decision through the Congress high command, the Karnataka CM insulates himself from the fallout either way. The deeper problem is the contradictory investigative picture: the state's own CID has cleared Nagendra while the CBI and ED continue to probe. That contradiction is not incidental — it reflects a structural tension between the Centre and state over who controls the narrative on tribal welfare accountability. For a party that leans heavily on SC/ST voter consolidation, the optics of a minister implicated in a ₹89 crore tribal fund diversion lingering in Cabinet carry a cost that no clean chit fully erases.
NationPress
28 Aug 2026
Frequently Asked Questions
Has Karnataka Minister B. Nagendra resigned over the Valmiki scam?
As of 28 August, CM Shivakumar indicated that Nagendra had spoken to him that morning and would address the media directly on the resignation question. No formal confirmation of a resignation had been made public at the time of reporting.
What is the Maharshi Valmiki scam in Karnataka?
The Maharshi Valmiki scam involves the alleged illegal diversion of approximately ₹89 crore from welfare accounts of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation (KMVSTDC). The case came to light in May 2024 after a corporation employee, Chandrasekar P., died by suicide and left a note reportedly exposing the unauthorised fund transfers.
Why are BJP and JD(S) demanding Nagendra's resignation?
The BJP and JD(S) allege that Nagendra played a role in the ₹89 crore tribal welfare fund diversion. They have launched a sustained agitation, announced a 185-kilometre protest march, and disrupted the Karnataka Monsoon Assembly session to press their demand for his removal from the Cabinet.
What is the Congress high command's position on Nagendra?
CM Shivakumar said the matter has been 'left to the high command,' indicating the central party leadership in New Delhi will take the final call on Nagendra's future in the Karnataka Cabinet.
Which agencies are investigating the Valmiki scam?
The Special Investigation Team (SIT), the Central Bureau of Investigation (CBI), and the Enforcement Directorate (ED) are all probing the case. The state government's Criminal Investigation Department (CID) has, however, reportedly given Nagendra a clean chit, creating a contradictory investigative landscape.
