Minister B Nagendra Resigns From Cabinet Amid ST Corporation Scam Allegations, Represents Bellary RuralPolitics
28 Aug 2026, 6:49 pm (2 hours ago)· 2

Minister B Nagendra Resigns From Cabinet Amid ST Corporation Scam Allegations, Represents Bellary Rural

Karnataka Minister B Nagendra has resigned from the state cabinet following allegations of financial irregularities in the 90 crore rupee ST fund scam.

In a significant political development in Karnataka, Minister B Nagendra has announced his resignation from the state cabinet. Representing the Bellary Rural assembly constituency, Nagendra held the portfolio for the Planning and Statistics Department. His resignation follows heavy pressure and allegations linked to financial irregularities in the state scheduled tribe development body.

The Valmiki Corporation Scam and Financial Allegations

The controversy centres on the alleged misappropriation of 90 crore rupees belonging to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation. Investigators uncovered unauthorized transfers of public funds meant for tribal welfare programs into private and shell accounts. The Enforcement Directorate launched a probe into the money laundering aspect, leading to the arrest and interrogation of B Nagendra, whose ED custody was subsequently extended through 22 July.

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Investigative Friction and Legal Turmoil

The high-profile investigation also triggered a standoff between federal enforcement authorities and state police. Following allegations that investigating officers were attempting to falsely implicate political figures, a local police case was registered against ED officials. Despite the conflict, central investigators continued gathering evidence regarding the movement of illicit funds.

Cabinet Dynamics and Leadership Response

Addressing the development following Nagendra's offer to step down, the Karnataka Chief Minister emphasized party unity and discipline. Reacting to the resignation offer, the Chief Minister stated that Congress leaders are disciplined soldiers who adhere to organizational decisions. Meanwhile, discussions regarding an impending cabinet reshuffle have gained momentum, with several ruling party legislators publicly expressing their desire for ministerial berths.

Questions & Answers

Why did Minister B Nagendra resign from his post?
B Nagendra resigned following allegations of financial irregularities and involvement in the 90 crore rupee ST fund scam at the Valmiki Development Corporation.
Which assembly constituency does B Nagendra represent?
B Nagendra is the elected Legislative Assembly member representing the Bellary Rural constituency in Karnataka.
Which agency is investigating the financial irregularities?
The Enforcement Directorate (ED) is investigating the money laundering aspect of the 90 crore rupee scam and had taken B Nagendra into custody for questioning.
How did the Karnataka Chief Minister respond to the resignation offer?
The Chief Minister stated that party leaders are disciplined soldiers who abide by organizational decisions.

Comments 2

Rohan Verma@rohan-verma·55m ago

The 90 crore rupee scandal in the Valmiki development corporation and Minister B Nagendra's resignation clearly demonstrate how aggressively central investigative agencies are cornering political leadership over financial irregularities. Amid Enforcement Directorate custody and mounting pressure, this exit is merely the beginning. In the coming days, this fallout is bound to fuel internal friction within the ruling party, especially with cabinet reshuffle talks gaining momentum. For the opposition, this controversy has transformed into a potent weapon to question governance and accountability, directly challenging the administration's political standing.

Ravikash Gupta@ravikash·55m ago

Extending Rohan Verma's analysis, the direct impact of this 90-crore financial scam and the Enforcement Directorate's action on the state's governance directly affects investor sentiment and market confidence. When such serious governance issues arise involving public funds, uncertainty grows among stakeholders. If policy stability is compromised amid cabinet reshuffles and political friction, it risks slowing down new investment inflows and regional economic momentum.

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