Karnataka Planning and Statistics Minister B Nagendra resigned from the state Cabinet on Friday, August 28, amid renewed political pressure over the alleged irregularities in the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. His resignation came just 25 days after he returned to the Cabinet, bringing the controversy surrounding the Valmiki Corporation scam back to the centre of Karnataka politics.
Nagendra, who became emotional while announcing his decision at Vidhana Soudha, said he was stepping down voluntarily to prevent embarrassment to the Congress government. He maintained that he had done nothing wrong and portrayed the allegations against him as politically motivated.
The resignation followed mounting pressure from the Opposition BJP, which had repeatedly demanded that Nagendra quit over the alleged diversion of funds from the tribal development corporation. The BJP and JD(S) had also intensified their protest during the Karnataka legislature’s monsoon session, making Nagendra’s continuance in the Cabinet a major political issue.
Nagendra’s latest exit is particularly significant because it is his second resignation linked to the same controversy. He had first stepped down as minister in June 2024, when he was serving as the minister for Scheduled Tribes Welfare. The issue had erupted after allegations that funds belonging to the Valmiki Corporation were illegally transferred to accounts outside the organisation.
The scandal came to light following the death by suicide of P Chandrasekharan, an accounts superintendent with the corporation. His note raised allegations of unauthorised transfers and financial irregularities. Investigators subsequently traced a large movement of funds through multiple accounts.
The Central Bureau of Investigation has since taken up a major part of the investigation. In June this year, the agency filed chargesheets against Nagendra and 29 others. The CBI alleged that about ₹89.63 crore was diverted through a network involving officials, private individuals and bank accounts.
According to the CBI’s allegations, Nagendra received ₹1.20 crore as illegal gratification through his associate Nekkanti Nagaraj. The agency said the money was routed into accounts belonging to members of Nagendra’s family. These are allegations contained in the investigation and remain subject to legal proceedings.
The CBI’s chargesheet has added a new dimension to the political controversy. The agency has alleged a wider conspiracy involving Nagendra, his associates and officials connected with the Valmiki Corporation. The investigation has focused on how funds intended for the welfare and development of Scheduled Tribe communities were allegedly diverted through unauthorised transactions.
Nagendra, however, has consistently denied wrongdoing. During Friday’s resignation announcement, he accused the BJP and his political opponents of targeting him because he is a Dalit. He invoked the broader issue of social justice and alleged that forces opposed to the rise of Dalits were using the controversy against him.
His remarks have given the resignation a political dimension beyond the corruption allegations. Rather than presenting his departure solely as a response to the investigation, Nagendra sought to frame it as a temporary setback in a larger political battle. His emotional statement also underlined the personal and political pressure he has faced since the Valmiki Corporation case first emerged.
Chief Minister D K Shivakumar said Nagendra had offered to resign to avoid embarrassing the Congress government. Shivakumar indicated that the resignation would be considered in consultation with the party leadership.
The timing of Nagendra’s resignation has also raised questions within the Congress. He was reinducted into the Karnataka Cabinet on August 3 as part of a major expansion in which several Congress legislators were brought into the government. His return came despite the continuing legal and political scrutiny surrounding the Valmiki Corporation case.
The Opposition has welcomed his resignation but said it is not enough. BJP state president B Y Vijayendra described Nagendra as only a “small fish” in the alleged scam and argued that the investigation must identify those he described as the bigger players. The BJP has demanded accountability beyond the minister and continued to target the Congress government over the handling of the case.
The controversy has therefore moved beyond the question of one minister’s position. At its heart is the alleged misuse of money meant for Scheduled Tribe welfare, raising questions about financial controls, administrative oversight and political accountability.
Nagendra’s second resignation is an uncomfortable development for the Congress. His reinduction had already drawn criticism from the Opposition, while the continuing CBI investigation kept the Valmiki Corporation case alive. His latest resignation may ease some immediate political pressure, but it is unlikely to end the controversy.
