B. Nagendra Resigns From Karnataka Cabinet Over Valmiki Corporation Scam, Says ‘I Am Innocent’

Karnataka Planning and Statistics Minister B. Nagendra resigned from the state Cabinet on Friday amid renewed political pressure over alleged financial irregularities in the Maharshi Valmiki Scheduled Tribes Development Corporation case.

Nagendra, who announced his resignation at Vidhana Soudha (Legislative House) in Bengaluru, became emotional during the press conference and maintained that he had no role in the alleged diversion of tribal welfare funds.

The resignation marks the second time Nagendra has stepped down from the Karnataka Cabinet over the same controversy. He had resigned in June 2024 when the allegations first emerged and was re-inducted into the government earlier this month after D K Shivakumar became Chief Minister.

B. Nagendra: ‘I Am Innocent’

While announcing his decision, Nagendra said he was resigning voluntarily and not because the Congress high command had ordered him to step down.

He said Chief Minister D K Shivakumar had told him that he was innocent and did not need to resign. Nagendra, however, said he did not want the continuing controversy to cause embarrassment to the Congress government or its leadership.

“I am resigning out of my own free will,” he said. He also insisted that allegations against him should be discussed in the Assembly rather than being used as a political weapon.

Nagendra accused the BJP of targeting him because he is a Dalit leader and alleged that the Opposition has an “anti-tribal mindset”. He also referred to the Manusmriti while attacking the BJP's position on the controversy.

He broke down while speaking about the allegations and reiterated that he would fight to establish his innocence.

What Is the Valmiki Corporation Case?

The controversy centres on the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, which handles funds intended for the welfare and development of Scheduled Tribe communities.

The case came to light in May 2024 after the corporation's accounts superintendent, P Chandrasekharan, died by suicide. A note left behind by him alleged unauthorised transfers of funds from the corporation's accounts.

Subsequent investigations found that large sums had been moved through multiple bank accounts. The CBI later filed a chargesheet naming Nagendra and 29 others, alleging that ₹ 89.63 crore was fraudulently diverted through forged cheques and RTGS transactions.

According to the CBI chargesheet, the money was routed through around 600 bank accounts and allegedly converted into cash, bullion and luxury vehicles. The agency has alleged that the transactions involved government officials, bank officials, private individuals, middlemen and Nagendra's associate Nekkanti Nagaraj.

These are allegations made during the investigation and remain subject to judicial proceedings.

Why Nagendra Resigned Again

The pressure on Nagendra intensified after his return to the Cabinet.

The Opposition BJP had repeatedly demanded his removal and disrupted proceedings in the Karnataka legislature over the issue. The Monsoon Session itself ended three days ahead of schedule after sustained protests centred on the demand for Nagendra's resignation.

BJP leaders also staged protests outside Vidhana Soudha and announced a larger campaign against the Congress government.

The Karnataka BJP has announced a 10-day padayatra from Raichur to Ballari beginning September 1. The proposed march is expected to focus heavily on the Valmiki Corporation allegations, along with other issues including farmer distress, unemployment and alleged irregularities in recruitment.

Nagendra said he did not want his continued presence in the Cabinet to provide the BJP with another political issue.

CBI Chargesheet Intensified Pressure

The political controversy gained further weight after the CBI filed its chargesheet in June 2026.

The agency named 30 people in the case and alleged that ₹ 89.63 crore was diverted through forged banking documents and RTGS transactions. The investigation followed a complaint by Union Bank of India concerning alleged illegal transfers and withdrawals from the corporation's funds.

Investigating agencies have also examined allegations concerning the wider handling of the corporation's funds. The Enforcement Directorate has separately pursued the money-laundering aspect of the case.

Nagendra has consistently denied wrongdoing.

Shivakumar Had Defended Nagendra

The resignation comes days after Chief Minister D K Shivakumar publicly defended Nagendra.

On August 26, Shivakumar said Nagendra was innocent and that the Congress leadership had confidence in him. He had also dismissed speculation that Nagendra was preparing to resign at the time.

Nagendra nevertheless decided to step down, saying the move was necessary to protect the party from further political damage.

BJP Seizes On Resignation

The resignation is likely to give the BJP fresh ammunition against the Congress government in Karnataka.

The Opposition had made Nagendra's re-induction into the Cabinet a central issue in its campaign against the government. BJP leaders have accused the Congress administration of failing to ensure accountability over funds meant for Scheduled Tribe welfare.

Nagendra, on the other hand, has argued that the BJP is using the case to target a Dalit and tribal leader.

The resignation now removes one immediate pressure point for the Shivakumar government, but the underlying legal case remains unresolved. Nagendra's future in the Cabinet will depend not only on the political fallout but also on the outcome of the investigations and court proceedings.