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SIT arrests 2 close associates of Karnataka Congress minister B Nagendra in Valmiki corporation scam

Three individuals were arrested by the Special Investigation Team for illegally transferring Rs 94.73 crore from Maharshi Valmiki Corporation to bogus accounts. The key suspects include Nekkunti Nagaraj, Nageshwar Rao, and Satyanarayan, chairman of the Co-operative Bank of Hyderabad. Over Rs 45 crore was recovered, although much remains missing. 

SIT arrests 2 close associates of Karnataka Congress minister B Nagendra in Valmiki corporation scam vkp
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First Published Jun 6, 2024, 10:02 AM IST

The Special Investigation Team (SIT) has apprehended three individuals linked to a substantial illegal money transfer involving the Maharshi Valmiki Corporation. Among those arrested are two close associates of Karnataka's Minister for Scheduled Tribe Development, B. Nagendra. The accused are Nekkunti Nagaraj from Ballari district, his father-in-law Nageshwar Rao, and Satyanarayan, who is the chairman of the Co-operative Bank of Hyderabad.

The arrests came after it was discovered that Rs 94.73 crore had been illicitly funnelled from the corporation's Union Bank accounts to 18 bogus accounts at the First Finance Credit Co-operative Society (FFCCSL), headed by Satyanarayan in Hyderabad. This elaborate scheme was orchestrated over several months.

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Upon investigating, the SIT unearthed fake accounts at the co-operative bank used for the transactions. They responded swiftly by seizing Rs 45 crore from the bank accounts connected to Satyanarayan, although a substantial amount remains unaccounted for. Notably, one of the recipients returned Rs 5 crore, acknowledging the irregularity.

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Satyanarayan established FFCCSL in 2013, and it has since grown to serve over 7,000 customers with 13 branches in Hyderabad. His connections with influential politicians and businessmen in Andhra Pradesh and Telangana are under scrutiny, as investigators suspect these relationships facilitated the financial misconduct.

Further complicating the matter, the former managing director of Valmiki Corporation, J.G. Padmanabha, and the accountant Parasuram G, previously arrested, have claimed their signatures were forged on the checks used for the money transfer. These items have been sent to a forensic lab for detailed analysis.

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