ED records B Nagendra’s statement in Valmiki Corporation money laundering case

The Enforcement Directorate recorded former Karnataka minister and Congress MLA B Nagendra's statement in the alleged Rs 89-crore Valmiki Corporation money laundering case. Nagendra, previously arrested and later granted bail, was questioned over alleged financial irregularities and a recent CBI chargesheet

Bengaluru: The Enforcement Directorate on Monday recorded the statement of former Karnataka minister and Congress leader B Nagendra in a money laundering investigation linked to the alleged misappropriation of funds from the Valmiki Corporation, officials said. The 54-year-old MLA’s statement was recorded under the provisions of the Prevention of Money Laundering Act (PMLA) at the ED’s office here, they said. The federal probe agency had earlier questioned Nagendra, a Congress MLA from Bellary Rural, in this case and arrested him in July 2024. It subsequently filed a chargesheet against him.

According to officials, the fresh round of questioning is understood to be linked to alleged irregularities in the Karnataka Maharishi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDC) and the contents of a chargesheet filed by the CBI in this case in June. The legislator resigned from the Karnataka Cabinet in late August for the second time against the backdrop of the opposition pressure regarding his alleged involvement in the Rs 89-crore Valmiki Corporation “scam”. He had also resigned in 2024 after the case came to light and was subsequently arrested by the ED. He later secured bail.

---

After resigning a second time, he accused the opposition BJP of “spreading lies” about the alleged Valmiki Corporation scam. Nagendra asserted that he resigned from the cabinet to protect the Congress government and party from embarrassment. The Valmiki Corporation case came to light after the corporation’s accounts officer Chandrasekharan P died by suicide in May 2024, leaving behind a note alleging unauthorised transfer of funds. Investigations subsequently alleged that large sums were transferred from the corporation’s bank accounts to various accounts, triggering a political controversy and demands for Nagendra’s resignation.