Setback For Siddaramaiah Govt As Karnataka HC Orders CBI Probe Into Valmiki Corporation 'Scam'

The court ordered the SIT appointed by the state government (CID) to transfer all the documents related to the case to CBI. The court has also directed the CBI to submit a detailed status report.

Karnataka High Court has ordered a CBI probe into the alleged Valmiki Scheduled Tribe Development Corporation scam.

Source : X

The Karnataka High Court on Tuesday ordered a CBI probe into the alleged Valmiki Scheduled Tribe Development Corporation scam, in a major setback for the Chief Minister Siddaramaiah-led Congress government. The court has aslo directed the CBI to submit a detailed status report on the matter.

The order was passed by a bench led by Justice M. Nagaprasanna after hearing a petition filed by BJP leaders Basanagouda Patil Yatnal, Aravind Limbavali, and others. The petitioners had sought probe by a central agency probe, citing irregularities and misuse of funds within the corporation. 

Thereafter, the court ordered the Special Investigation Team appointed by the state government (CID) to transfer all the documents related to the case to CBI, which until now was only involved in probing specific irregularities related to the scam.

The development comes after the Enforcement Directorate conducted raids at locations linked to Congress MP E Tukaram from Bellary in connection with a money laundering probe related to the alleged Valmiki scam. Three other Karnataka MLAs, including Ballari city MLA Nara Bharat Reddy, Kampli MLA GN Ganesh, former minister B Nagendra, and his close aide Govardhan Reddy's residences were also searched.

These raids were held in June and were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), following FIRs by both the CBI and Karnataka Police.

About Valmiki Corporation Scam

Authorities are probing the suspected misappropriation of funds worth crores of rupees, which were intended for tribal welfare, but were illegally transferred from the Corporation’s accounts to fake bank accounts. 

According to ED, these large sums of money were later funnelled through shell companies and was allegedly used in the Bellary constituency during the 2024 Lok Sabha elections.

The Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation was established in 2006 to implement certain welfare schemes aimed at the socio-economic upliftment of Scheduled Tribe communities in the state.

The matter came to the fore after accounts superintendent of the Valmiki Corporation was found dead on May 21, 2024. A suicide note was found later, wherein he alleged illegal transfer of funds from the corporation to various bank accounts.