Karnataka Minister for Planning and Statistics B. Nagendra on Wednesday, 19 August hit back at the Opposition, accusing Bharatiya Janata Party (BJP) and Janata Dal (Secular) (JD(S)) of deliberately disrupting Karnataka Assembly proceedings to force his resignation over the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation scam. Nagendra alleged that 'Manuvadis' were conspiring to oust a Dalit and tribal leader from the Cabinet, and demanded that the Opposition instead participate in a structured floor debate on the issue.

Nagendra's Charge Against the Opposition

Addressing a press conference in Bengaluru, Nagendra stated: 'Why? Because a Dalit has once again become a minister. A person from the tribal community has once again become a minister. These Manuvadis are conspiring to somehow remove us from the Cabinet and push us out of office.'

The minister, who was recently inducted into the Cabinet for a second term, said the Opposition's insistence on demanding his resignation — rather than engaging in discussion — was a deliberate attempt to prevent accountability from being established on the floor of the House.

What the Valmiki Corporation Case Involves

The Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation scam came to light in May 2024 following the suicide of corporation accounts superintendent P. Chandrashekhar, who left a note detailing unauthorised fund transfers. According to Nagendra, ₹187 crore was transferred from the Corporation without a Board meeting and without his knowledge or that of the Corporation chairman.

Of the ₹187 crore, ₹100 crore was frozen immediately after the irregularity surfaced. The remaining ₹87 crore was transferred through Union Bank of India to Hyderabad and subsequently distributed among approximately 800 accounts. Investigators have so far traced and recovered around ₹79 crore, with the remainder either recovered or in the process of being recovered, according to the minister.

Separately, reports indicate that roughly ₹89 crore to ₹94 crore was illegally diverted into fake accounts and shell companies, particularly in Andhra Pradesh and Telangana.

Nagendra's Role and Legal History

Nagendra maintained that the money was transferred by officials without the required financial approval, and that not a single rupee from the alleged transaction reached his account or any account connected to him when the FIR was registered. He had voluntarily resigned from the Cabinet earlier to ensure his position did not influence the investigation.

The Enforcement Directorate (ED) subsequently conducted money laundering investigations, and Nagendra was arrested and jailed before securing court relief. Parallel probes by a Special Investigation Team (SIT) — constituted on 31 May 2024 — and the Central Bureau of Investigation (CBI) led to the arrest of multiple individuals, including bank staff, corporate executives, and intermediaries. Notably, the SIT under the Criminal Investigation Department (CID) has since given Nagendra a clean chit.

'I am innocent, and it pains me deeply that you are trying to portray a Dalit as a criminal,' Nagendra said at the press conference.

Broader Political Context

Nagendra also referenced the recent controversy surrounding Congress president Mallikarjun Kharge's visit to Uttarakhand, where a venue was allegedly 'purified' after his visit, arguing that caste discrimination remains entrenched in public life. He appealed directly to the Opposition: 'When a Dalit rises to a position of prominence, you should be happy. When an Adivasi rises from among ordinary people and does good work, you should be happy.'

He also called on the Opposition to allow House discussions on other pressing issues, including the Cauvery water dispute and drought relief, rather than stalling proceedings entirely.

What Happens Next

The Karnataka government has indicated its willingness to discuss the Valmiki Corporation case in the Assembly, and Nagendra has stated he is prepared to answer all questions on the floor. The Opposition's next move — whether to accept the government's offer of a floor debate or maintain its disruption strategy — will determine whether the Assembly session can return to regular business. With the SIT clean chit in hand, the minister's political future now hinges largely on the ED proceedings still underway.