In a significant development, the Karnataka High Court has granted permission to the Central Bureau of Investigation (CBI) to extend its probe into the Valmiki Corporation Scam. This expansion includes the alleged diversion of funds from the Karnataka German Technical Training Institute (KGTTI) and the Scheduled Tribes (ST) Welfare Department.
The decision came from Justice M. Nagaprasanna on July 1, 2025, while hearing a petition filed by four sitting BJP MLAs, including Basanagouda R Patil. The petitioners had requested the court to direct the CBI to thoroughly investigate Crime No. RC0782024E0001/2024, registered on June 3, 2024, and to file a final report in the jurisdictional court.
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The CBI, in its latest status report dated June 20, 2025, submitted that during its investigation into the Valmiki Corporation case, it uncovered new evidence pointing to the diversion of ₹95 lakh from KGTTI and ₹2.17 crore from the ST Welfare Department. Both amounts were transferred through intermediary accounts to the accused Shri Nekkanti Nagaraj. The agency asserted that these transactions were "intricately connected" to the primary scam under investigation.
“During investigation, the involvement of public servants, in collusion with other accused persons, has been prima facie established. An amount of ₹89.63 crores was diverted from the accounts of KMVSTDCL and routed through over 700 bank accounts,” the CBI revealed in its report.
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The scam involves alleged large-scale misappropriation of public funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL), which were then laundered into hard cash, bullion, and luxury vehicles. Earlier, the Enforcement Directorate had also raised concerns that misused funds might have been channelled during the parliamentary elections.
The court was informed that despite earlier directives, forensic images and crucial documents collected by the Crime Investigation Department (CID), Enforcement Directorate (ED), and Forensic Science Laboratories had not yet been shared with the CBI. The agency emphasized the urgency and importance of accessing this evidence for a complete and transparent probe.
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“Since the prayer is for completion of investigation or taking the investigation to its logical conclusion by filing a final report before the concerned Court, I deem it appropriate to grant the prayers that are sought by the CBI in the status report,” stated Justice Nagaprasanna.
Accordingly, the court has directed the CID, ED, Central and State Forensic Science Laboratories, and the jurisdictional court to furnish all requested documents and forensic images to the CBI. The Judge clarified that the CBI’s intention is not to expand the scope unnecessarily but to conclude its entrusted investigation effectively, based on new findings.
