B Nagendra, who held the portfolio of Karnataka Planning Minister, officially tendered his resignation on August 28, 2026. This sudden development occurred only 25 days after he was inducted into the state cabinet. The resignation was prompted by a series of legal challenges and a mounting political offensive from the opposition, making his continued presence in the ministry a liability for the ruling administration.
The primary reason for this exit is a formal chargesheet submitted by the Central Bureau of Investigation (CBI). The federal agency has been investigating significant financial irregularities within the Maharshi Valmiki Scheduled Tribes Development Corporation. According to the CBI findings, approximately ₹89 crore was diverted from the corporation's official accounts through unauthorized channels, leading to one of the biggest corruption scandals in recent state history.
Deputy Chief Minister DK Shivakumar addressed the media regarding the situation, confirming that the minister had stepped down to avoid causing further embarrassment to the party. The BJP had been relentlessly demanding Nagendra's removal, arguing that his position in the cabinet could compromise the integrity of the ongoing probe. The opposition had threatened large-scale protests across Bengaluru if action was not taken immediately.
- ₹89 crore diverted — government funds were moved from the Valmiki Corporation to private entities
- CBI chargesheet filed — the federal investigative agency named the minister as a key figure in the scam
- 25-day cabinet tenure — Nagendra's brief second stint in the ministry ended abruptly following legal pressure
- Political fallout — the resignation follows a sustained campaign by the BJP leadership in Karnataka
The controversy surrounding the Valmiki Corporation first came to light after the death of Chandrashekharan P, an accounts superintendent who allegedly died by suicide. In a note recovered by the police, he detailed how he was coerced into facilitating the illegal transfer of funds. This incident triggered a massive investigation that eventually saw the CBI take over the case from state authorities to ensure a neutral inquiry.
Investigators discovered that the misappropriated money was moved from the corporation's account at the Union Bank of India branch on MG Road. From there, the ₹89 crore was dispersed into nearly 18 different bank accounts located in Telangana and Andhra Pradesh. These accounts were reportedly linked to various shell companies that had no legitimate business dealings with the state-run corporation.
B Nagendra had previously served as the Scheduled Tribes Welfare Minister but had stepped down earlier this year when the allegations first surfaced. His re-induction into the cabinet as the Planning Minister was viewed by many as a premature move. However, the fresh evidence presented in the CBI chargesheet left Chief Minister Siddaramaiah with little choice but to accept his resignation for the second time.
The Enforcement Directorate (ED) is also conducting a parallel investigation into the money laundering aspects of the case. The ED has already conducted several raids at properties linked to the former minister and his associates. They are currently examining whether the diverted ₹89 crore was used to fund political activities or was moved into offshore assets under the Prevention of Money Laundering Act.
Deputy CM DK Shivakumar emphasized the government's stance on the matter, stating, "We want a transparent investigation where the law takes its own course without any perceived interference from the state government." He added that the Congress administration remains committed to the welfare of tribal communities and will ensure that the embezzled funds are recovered and returned to the corporation.
The BJP leadership has described the resignation as a moral victory but continues to demand a deeper probe into other departments. They claim that the Valmiki Corporation scam is merely the tip of the iceberg regarding financial mismanagement in the state. As the CBI continues its legal proceedings, the Karnataka government is now focused on filling the cabinet vacancy and restoring public confidence in its administrative processes.
