2 days after Lok Sabha elections results, Karnataka Congress minister Nagendra resigns amid row over Rs 94 crore scam

As the BJP launched its protest demanding the resignation of Nagendra, understanding the gravity, the Congress, soon after the Lok Sabha elections were over, asked Nagendra to resign from his post to prevent further embarrassment, said a congress leader.

On Thursday, Nagendra held a press meet and announced his resignation stating that he did not have any role in the scam. “For the last 10 days, the media has been reporting about the case. Also, the opposition (BJP) has been targeting the government. I have met Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivakumar. I am resigning from the post on my own and nobody has forced me to do so,” he said.

Asked whether he was not aware of the irregularities, Nagendra claimed that he did not know anything and said, “I was totally unaware of it and when the incident came to light, from this very office of mine I suspended the managing director. There is no way that the government will protect anyone who is part of the scam,” he added.

Asked about an audio clip which is doing the rounds where a suspect is heard referring to a “minister” who is aware of the transactions, he said, “He has not taken my name and just by the word minister, it doesn’t mean it is about me.”

The misappropriation came to light after P Chandrashekaran, a corporation official involved in auditing and coordinating with Union Bank of India died by suicide on May 26, detailing the fraud and the people involved in a six-page note he left behind.

Documents accessed by The Indian Express show that on March 31, the money was transferred to fictitious accounts opened in RBL Bank (formerly Ratnakar Bank), Hyderabad, in the names of reputed organisations. The probe also revealed that the funds that were transferred were later transferred to other accounts and some portion of the money was also withdrawn.

According to the KMVSTDC complaint, the corporation officials allegedly forged signatures and illegally transferred Rs 94,73,08,500 to various accounts. The FIR further alleges that the corporation did not receive any intimation of these transactions, either through SMS or through the registered email ID.

Union Bank of India’s deputy general manager and regional head of Bengaluru east in the complaint with the CBI stated that Rs 89.63 crore public money was defrauded and Rs 5 crore has been recovered and Rs 84.63 crore is yet to be recovered.

The investigation has revealed that of the 15 accounts to which the money was transferred, nine were opened on March 31 at RBL bank in Hyderabad.

Earlier in the day, a delegation of BJP leaders led by state unit president B Y Vijayendra and leader of opposition R Ashoka submitted a letter to the government demanding the resignation of Ashoka and Nagendra.

Later, Vijayendra told the media that corruption has taken place in the state and without the approval of the Finance department, it cannot happen. Karnataka Chief Minister Siddaramaiah holds the Finance portfolio.

The SIT police have arrested former managing director J J Padmanabh, accounts officer Parashuram G Durugannavar and Satyanarayana, the chairman of First Finance Credit Co-Operative Society Limited from Hyderabad.

B Nagendra, 52, is a four-time MLA who is presently the minister of Sport and Youth Services and ST Welfare. In the 2023 Assembly elections, he won against former BJP minister B Sriramulu with a margin of 29,300 votes.