Karnataka Minister B Nagendra Resigns: Second Exit Over Valmiki Corporation Scam Allegations

In a significant political development in Karnataka, Minister B. Nagendra announced his resignation on Friday, August 28, marking his second exit from the cabinet in connection with the Maharishi Valmiki Scheduled Tribes Development Corporation scam. The decision comes amid mounting pressure from the opposition and allegations of his involvement in financial irregularities amounting to 187 crore rupees. Nagendra, who had been re-inducted into the cabinet just 25 days prior, submitted his resignation to Karnataka Deputy Chief Minister DK Shivakumar at Vidhana Soudha.

Emotional Resignation and Allegations of Political Targeting

During a press conference held at Vidhana Soudha, B, while nagendra appeared visibly emotional, with tears in his eyes as he announced his decision to step down. He maintained his innocence, asserting that he was being unfairly targeted by the opposition. Nagendra stated that he chose to resign voluntarily to prevent any further embarrassment to his party caused by the unnecessary allegations leveled against him by the opposition. In a sharp critique of the BJP, he remarked that certain 'Manuvadi' elements didn't wish to see an individual from the tribal community progress in the country.

Opposition Pressure and Planned Protests

The resignation follows intense pressure from the BJP and JD(S), who have been demanding Nagendra's removal since the scam surfaced. The opposition parties had planned a massive 'padayatra' (foot march) from Raichur to Ballari, scheduled from September 1 to September 10, to protest against the alleged corruption. The issue also dominated the monsoon session of the Karnataka Assembly, where the opposition staged numerous protests both inside and outside the house, while due to the continuous disruptions, the assembly session was adjourned sine die on August 24, three days ahead of its original schedule.

The History of Resignations and Re-induction

This is the second time B. Nagendra has stepped down due to the Valmiki Corporation controversy, while he originally served as the Minister for Tribal Welfare when the allegations first emerged. In June 2024, following the initial outcry, he resigned from the then Siddaramaiah-led government. However, in a surprising move, he was re-inducted into the cabinet on August 3, 2026, under DK Shivakumar's leadership and was assigned the Planning and Statistics department. His return to power immediately reignited opposition protests, leading to his latest resignation on August 28.

The Core of the Valmiki Corporation Scam

The controversy centers on the Maharishi Valmiki Scheduled Tribes Development Corporation, a body under the administrative control of the state government. It's alleged that a sum of approximately 187 crore rupees was unauthorizedly transferred from the corporation's bank accounts. The scam came to light in May 2024 following the tragic suicide of the corporation's accounts officer, Chandrashekhar P. In his suicide note, Chandrashekhar alleged that 187 crore rupees belonging to the corporation were illegally moved out of its bank accounts.

Investigation by CBI and ED

62 crore rupees were transferred to various accounts, including those linked to prominent IT companies and a cooperative bank based in Hyderabad. The Central Bureau of Investigation (CBI) took over the case after Union Bank of India filed a formal complaint. The CBI subsequently filed an FIR and a charge sheet naming Nagendra as an accused, alleging financial irregularities and the accrual of illegal benefits. Also, the Enforcement Directorate (ED) had previously arrested Nagendra in connection with the case, though he's currently out on bail. Despite CM DK Shivakumar reportedly advising him not to resign, Nagendra stated he took the step to shield the government from further controversy.