Karnataka Planning and Statistics Minister B Nagendra resigned from Chief Minister D K Shivakumar’s Cabinet on Friday, August 28, just 25 days after returning to office, amid mounting pressure from the Opposition over the alleged Maharshi Valmiki Scheduled Tribes Development Corporation funds case. Nagendra became emotional while announcing his decision at Vidhana Soudha, saying he was stepping down voluntarily to prevent embarrassment to the Congress government.
He denied wrongdoing and accused the BJP of politically targeting him, while the BJP and JD(S) have maintained that his resignation is necessary to ensure accountability. The development comes days after the Central Bureau of Investigation (CBI) reportedly sought the Karnataka Governor’s sanction to prosecute Nagendra. The CBI had earlier named him among 30 accused in a chargesheet alleging that ₹89.63 crore was fraudulently diverted from funds meant for Scheduled Tribes.
Opposition Pressure Mounts
Nagendra announced his resignation after returning from Delhi and meeting Shivakumar, saying he did not want the controversy to affect the Congress government. In an emotional press conference, he said, “Today I am voluntarily tendering my resignation as the minister,” and submitted his resignation to the Chief Minister.
He also insisted that he had not committed any wrongdoing and framed the Opposition’s campaign against him as politically motivated. Nagendra accused the BJP of targeting him because of his social background and described the campaign as part of what he called an “anti-tribal mindset”.
The BJP, however, has portrayed the resignation as the result of sustained pressure over the alleged corruption case. BJP state president B Y Vijayendra described Nagendra as only a “small fish” in the alleged scam and said that those responsible for the larger financial irregularities must also be identified and held accountable. The BJP and JD(S) had disrupted legislative proceedings and organised protests demanding Nagendra’s removal after his re-induction into the Cabinet. Their campaign intensified after reports that the CBI had approached Governor Thaawarchand Gehlot seeking sanction to prosecute the minister.
Scam Probe Deepens
The controversy centres on the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, which handles welfare and development programmes for Scheduled Tribe communities. The issue first came to light in 2024 after the corporation’s accounts superintendent, P Chandrashekharan, died by suicide and left behind a note alleging unauthorised transfers from the corporation’s funds. The Union Bank of India subsequently complained about suspicious transactions, while the Karnataka government constituted a Special Investigation Team (SIT) and the CBI also took up the matter.
Nagendra had resigned as the Tribal Welfare, Youth Affairs and Sports Minister in June 2024 amid the controversy, making Friday’s resignation his second Cabinet exit linked to the same case. The CBI filed three chargesheets in June 2026, naming Nagendra and 29 others. According to the agency, ₹89.63 crore was allegedly diverted through forged cheques and RTGS transactions and subsequently routed through around 600 bank accounts. The CBI has alleged that the money was ultimately converted into cash, bullion and luxury vehicles. Its chargesheet also alleged that Nagendra received illegal gratification of ₹1.20 crore and benefited from a vehicle purchased using diverted funds. These remain allegations before the court, and Nagendra has denied involvement.
The latest development has further raised the stakes. Reports said the CBI sought the Governor’s sanction to prosecute Nagendra, while the Opposition stepped up its campaign for his removal. State Home Minister Priyank Kharge had earlier said he had limited information about the CBI’s reported request and questioned the procedure followed by the agency.
The Logical Indian’s Perspective
The resignation of a minister amid a corruption investigation is not, by itself, proof of guilt. At the same time, allegations involving money meant for the welfare of Scheduled Tribe communities deserve serious and transparent scrutiny because public funds are ultimately meant to serve people who depend on such programmes. Political parties have a legitimate role in demanding accountability, but political pressure should not replace due process or become a substitute for evidence.
Nagendra, like every accused person, is entitled to a fair investigation and the presumption of innocence until a court establishes otherwise. What matters now is that investigators are allowed to establish the facts independently, that anyone found responsible is held accountable regardless of political affiliation, and that welfare funds reach the communities for whom they were intended. Can Karnataka’s political leadership turn this controversy into an opportunity to strengthen transparency and public trust rather than deepen political confrontation?
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