The Central Bureau of Investigation (CBI) carried out extensive searches on September 15, targeting the residences and properties of former Karnataka minister B. Nagendra, along with 15 other locations across Karnataka and neighboring Andhra Pradesh. These raids are linked to the escalating Valmiki Scheduled Tribes Development Corporation (STDC) scam, according to official sources.
At the heart of the investigation are serious allegations of significant fund embezzlement, monies specifically allocated for critical welfare programs benefiting tribal communities.
Established in 2006, the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation was founded with a noble mission: to implement vital developmental schemes designed to elevate the socio-economic status of Scheduled Tribe communities throughout Karnataka.
Initially, the probe commenced in June 2024 as a bank loan fraud investigation against the former minister. However, as the CBI delved deeper, they uncovered records reportedly showing transfers of significant funds into the personal accounts of the minister’s sister and brother-in-law, raising further suspicions, officials stated.
Previously restricted to a narrower scope of irregularities, the CBI received crucial approval from the Karnataka High Court in July 2025 to launch a comprehensive, full-fledged investigation into the matter. This judicial directive also mandated the State’s Special Investigation Team (SIT) to hand over all relevant documents and evidence to the central agency, ensuring a unified and thorough inquiry.