The Karnataka Excessive Court docket on Tuesday allowed an investigation by the CBI into sure points of the Karnataka Maharshi Valmiki Scheduled Tribe Growth Company rip-off, directing the company to be supplied with sure paperwork and different supplies.
The petition for a CBI investigation was filed by BJP leaders Basangouda Yatnal, Ramesh Jarikholi, Arvind Limbavalli, and Kumar Bangarappa. The BJP has since expelled Yatnal.
A single-judge bench of Justice M Nagaprasanna mentioned in its order, “For the reason that prayer is for completion of investigation or taking the investigation to its logical conclusion by submitting a ultimate report earlier than the involved Court docket, I deem it applicable to grant the prayers which might be sought by the CBI within the standing report. Subsequently, I direct the CID, Enforcement Directorate, Central Forensic Science Laboratory and the State Forensic Science Laboratory and the involved Court docket to furnish the paperwork and forensic photos as hunted for…. for the aim of conduct of investigation and submitting of a ultimate report earlier than the involved Court docket.”
The CBI of their submissions earlier than the courtroom said that additional cases of fund diversions had been found. Rs 95 lakh had allegedly been siphoned from the Karnataka German Technical Coaching Institute to the account of one of many accused, Nekkanti Nagaraj. It was additionally alleged that he diverted Rs 2.17 crore from the Scheduled Tribes welfare division.
Former tribal welfare minister B Nagendra of the Congress was arrested within the case and launched on bail later.
In November 2024, the excessive courtroom rejected a petition filed by the Union Financial institution searching for an investigation into the embezzlement of Rs 94.73 crore within the rip-off. The courtroom then noticed that whereas an unbiased investigation is perhaps applicable, it couldn’t be completed by part 35A of the Banking Regulation Act as argued by the financial institution.