Newsmaker | Who is LC Nagaraj, a scam-accused fielded by Karnataka BJP in Oppn stronghold

The IMA is accused of collecting thousands of crores from the public, assuring them of higher dividends than regular investment schemes. In 2019, after the company failed to return the money, and its offices shut down, more than 41,000 investors filed complaints and a Special Investigation Team (SIT) was formed. Nagaraj, then the Bengaluru North assistant commissioner, was accused of receiving Rs 4.5 crore in bribes to give a no-objection certificate to the IMA group’s founder Mohammed Mansoor Khan and was arrested.

With the majority of those who lost money in the scheme being Muslims, the BJP had, at the time, alleged that several Congress leaders, including B Z Zameer Ahmed Khan, were involved in the scam and were being shielded by the JD(S)-Congress coalition government that was in power at the time. The case was handed over to the Central Bureau of Investigation (CBI), which, in its chargesheet, accused Nagaraj of accepting the Rs 4.5-crore bribe.

While he was in service, Nagraj was known to dabble in the real estate business on the side. In November 2021, the state Anti-Corruption Bureau (ACB) raided Nagaraj’s properties. He later approached the Karnataka High Court to have the case quashed though his trial in the IMA case is still pending before a local court.

An early probe into the IMA scam was carried out by the state ACB and was headed by IPS officer S Girish who is the son-in-law of K N Rajanna, the Congress candidate who lost from Madhugiri in 2018 and is being repeated as the party candidate this year.

Nagaraj submitted his resignation last month. The government reportedly cleared his resignation, pending inquiry, and then the BJP gave him the ticket.

BJP spokesperson M G Mahesh said the party would not get into the court cases that Nagaraj is facing and pointed out he had not been convicted by any court. “Nagaraj is facing corruption charges but hasn’t yet been convicted. We have zero tolerance for corruption. As the case is in court, he is still innocent. If something is proven against him, we’ll withdraw our support then and there,” he added.

Asked if it would not dent the party’s image, given that another leader accused of bribery, Madal Virupakshappa, has been denied a ticket even though he is yet to be proven guilty, Mahesh said the tickets were distributed based on the feedback of locals.

Karnataka Congress general secretary B S Shivanna said the BJP’s candidate selection for Madhugiri reflected the party’s ethics. “The Prime Minister says ‘Na khaoonga, na khane doonga’, yet they have given a ticket to one of the prime accused in the IMA case. What can you expect from the corrupt BJP?” he asked.

While the BJP has never won Madhugiri, Nagaraj will be playing the “local” card as the incumbent MLA Veerabhadraiah is from Nelamangala, while the Congress’s Rajanna is from Magadi, although he has lived in Tumakuru.

According to a close associate of Nagaraj, he did not want to contest but changed his mind after his wife died of cardiac arrest in November 2021 and the ACB raided his house. “He is from Nayaka, an ST caste, and comes from a poor background. He worked as a labourer and lived in a hostel to get educated.”

Nagaraj said, “I went through a phase of depression … There were people working against me in the government system. Eventually, for my survival, I had to take a call and submit my resignation.”

Nagaraj said initially he only wanted to help others contest. “Madhugiri hasn’t seen a local candidate in 68 years. I was working with a small team, approaching local leaders who could contest, assuring them that I would support them. But none showed any interest. When I was recalled to Bengaluru, the team I worked with felt abandoned. That’s when I decided to contest.”

A close associate, however, contradicted Nagaraj’s claims, saying he had begun preparations to contest the polls almost a year ago even before he resigned from government service.