Union Minister of State Shobha Karandlaje has urged Union Home Minister Amit Shah to mandate central agencies to investigate the illegal transfer of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.


Karandlaje also emphasized the recent suicide of Chandrasekharan P, the Accounts Superintendent of the corporation, which exposed the scam.

In his suicide note, Chandrasekharan claimed that Rs 187 crore belonging to the corporation was illegally transferred. This includes Rs 88.62 crore moved to various accounts of some IT companies and a Hyderabad-based cooperative bank, according to official sources.

Karandlaje, an MP from Karnataka’s Bangalore North Lok Sabha constituency, noted that Chandrasekharan’s suicide might be connected to severe pressures and potential threats related to the scam.

“The loss of Mr. Chandrasekharan is a grievous blow, and his death underscores the urgent need for a transparent and thorough investigation into the factors leading to his untimely demise,” she said in a letter to Shah.

The minister also stated that there were serious allegations against Union Bank, implicating it in facilitating or overlooking the financial irregularities associated with the Valmiki Corporation.

“It is imperative to scrutinize the role of the bank in managing and processing the funds that were allegedly misappropriated. A formal complaint has already been lodged with the CBI, and this investigation must be pursued with the utmost diligence and integrity,” Karandlaje mentioned in her letter.


She requested Shah for “a comprehensive investigation by the relevant authorities into the Valmiki Development Corporation scam, ensuring that all individuals and entities involved are held accountable.”


Karandlaje asked the Home Minister to facilitate a thorough and independent inquiry by the CBI into the role of Union Bank and other financial institutions implicated in the scam.


“I request you to ensure justice and provide support for the family of Chandrasekharan, acknowledging the distressing circumstances that led to his tragic suicide, and strengthen oversight mechanisms to prevent such malfeasance in the future, ensuring robust monitoring of funds allocated for developmental projects,” the minister said in her letter.


The government formed a Special Investigation Team (SIT) which questioned Nagendra and Corporation chairperson Basanagouda Daddal on Tuesday.


Meanwhile, the Enforcement Directorate raided several locations in Karnataka, Andhra Pradesh, and Telangana on Wednesday, allegedly linked to Nagendra and Daddal. The searches continued on Thursday as well.


The SIT has so far arrested 12 people in connection with the case, including the managing director and accountant of the Valmiki Corporation.