KMVSTDCL funds routed to Rahul Gandhi’s house, alleges Karnataka BJP leader

Bengaluru, Aug 25 (IANS) Former Karnataka Minister and BJP leader, B. Sriramulu, on Tuesday alleged that the funds allegedly misappropriated from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL) were routed to the residence of Congress leader Rahul Gandhi.

Addressing the media at the BJP state headquarters Jagannatha Bhavan in Bengaluru, Sriramulu alleged that BJP leaders had raised slogans in the Assembly claiming that the misappropriated Valmiki Corporation funds had reached Rahul Gandhi’s residence and the government curtailed the Assembly session.

Sriramulu said the BJP has decided to undertake a padayatra from September 1, led by state BJP president B.Y. Vijayendra, BJP leaders Gali Janardhana Reddy, R. Ashoka, Bangaru Hanumantu and other party leaders.

The 10-day padayatra will begin in Raichur on September 1 and conclude in Ballari on September 10, he said.

“The padayatra will highlight issues including the government’s alleged negligence towards irrigation, corruption in the ST Corporation and the Valmiki Corporation issue. The Congress has been neglecting Dalits. The BJP is undertaking this major padayatra because we will not allow injustice to be done to Dalits,” Sriramulu said.

Sriramulu accused Congress leaders of shedding “crocodile tears” over issues concerning Dalits.

He alleged that the government had curtailed the Assembly session after taking note of the BJP’s protests over the issue.

“Protests were held in both the Legislative Assembly and the Legislative Council. Congress leaders have betrayed Babasaheb Ambedkar, Babu Jagjivan Ram and the Dalit community,” he alleged.

It can be noted that the Valmiki Corporation scam involves the alleged illegal diversion of funds from the KMVSTDCL.

The alleged scam came to light in May 2024 following the suicide of 52-year-old corporation superintendent Chandrasekar. P., who left a suicide note detailing unauthorised fund transfers and corruption.

While initial irregularities centered around smaller figures, investigative agencies like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) pegged the total misappropriation and diverted funds at around Rs 89 crore.

Funds earmarked for tribal welfare projects were illegally moved to unauthorised bank accounts—including bogus accounts opened using forged KYC documents at the Union Bank of India’s MG Road branch in Bengaluru—and later layered through shell cooperatives like Hyderabad’s First Finance Credit Cooperative Society.

The then-Karnataka Minister for Scheduled Tribes Welfare was identified by probe agencies as a primary mastermind behind the layering and siphoning of the funds. Nagendra previously resigned from the Cabinet, faced arrest, and later secured bail.

Currently, Nagendra has recently taken charge of Minister for Planning and Statistics in the Cabinet led by Chief Minister D.K. Shivakumar. BJP and JD (S) have announced that they will agitate until Nagendra is sacked from the Cabinet.

–IANS

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