The Enforcement Directorate (ED) Today (Oct 24) approached the Karnataka High Court challenging the special court’s order granting bail to former Karnataka minister B Nagendra, who was arrested on July 12 in connection with the Valmiki Corporation scam case. A special court in Bengaluru had recently granted bail to the former minister, who was arrested by the ED on July 12 in connection with the Valmiki Corporation scam case.
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BENGALURU: The Enforcement Directorate (ED) has taken legal action by approaching the Karnataka High Court on Thursday, challenging the decision of a special court that granted bail to former Karnataka minister B Nagendra. Nagendra was arrested on July 12 in connection with the Valmiki Corporation scam.
The ED’s move comes after the special court’s ruling on October 14, which allowed Nagendra to be released on bail.
Justice M Nagaprasanna, presiding over the case, issued a notice to Nagendra and has asked him to submit a reply by November 15, which is the scheduled date for the next hearing. The Court has decided to hear arguments from both parties before making any interim decisions on the matter.
Additional Solicitor General SV Raju, representing the ED, argued that the special court had made “many erroneous” assumptions in its decision to grant bail to Nagendra. Despite these claims, the court expressed the need for a balanced hearing, stating that it intended to “hear both parties” before passing any interim orders.
B Nagendra is currently facing charges related to the alleged misuse of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. The Enforcement Directorate filed a chargesheet earlier in October, identifying Nagendra as the central figure or “mastermind behind the scam.”
However, the Special Investigation Team (SIT), set up by the Karnataka government to investigate the scam, has not included Nagendra’s name in its First Information Report (FIR), raising questions about the difference in findings between the two investigating bodies.
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The Valmiki Corporation scam came into the public eye in May of this year following the tragic death of Chandrashekhar, the accounts superintendent of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. Chandrashekhar was found dead at his residence, having died by suicide. He left behind a note that pointed to the “misappropriation of welfare funds,” which prompted a deeper investigation into the corporation’s financial dealings.
Following Chandrashekhar’s death, the Karnataka government promptly formed an SIT to look into the allegations of financial fraud within the corporation. Parallelly, the Enforcement Directorate also launched its own investigation into the matter.
According to the ED’s findings, approximately Rs 90 crore had been “illegally transferred” from the Valmiki Corporation’s bank accounts to a number of “unauthorised accounts,” thereby intensifying the probe into the alleged scam.
This case has generated significant attention as it involves serious charges of corruption and financial mismanagement, with multiple agencies, including the ED and SIT, conducting investigations into the activities of the corporation and the individuals linked to the scandal.
The coming hearings will be pivotal in determining whether Nagendra will continue to remain on bail or if the ED’s challenge will lead to new legal developments.
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