K'taka HC rejects Union Bank of India's plea seeking transfer of Valmiki scam probe to CBI
Bengaluru, Nov 13: The Karnataka High Court on Wednesday dismissed a petition by Union Bank of India seeking transfer of the investigation of the alleged scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd to the CBI.
The petition was heard by Justice M Nagaprasanna, who ruled that Section 35A of the Banking Regulation Act could not be used as grounds for such a transfer. He noted that allowing this could lead to an overreach by banking institutions, potentially undermining the Delhi Special Police Establishment Act (DSP Act).
The case, reserved for judgment on September 30, focused on two main questions: whether the petition should be referred to the Supreme Court under Article 131 of the Constitution, and if Section 35A of the Banking Regulation Act justified seeking a CBI investigation without invoking the DSP Act.
The Karnataka government, represented by senior advocate B V Acharya, argued against allowing the petition, stating that the state police have the statutory authority to investigate the case, and this authority should not be overridden by the central government.
ALSO READ: Relief for MLA Satish Sail in Belekeri Iron Ore Theft Case; High Court stays jail sentence
Acharya emphasised that any dispute between the central and state governments must be addressed by the Supreme Court, not the High Court, as per Article 131 of the Constitution. He added that the RBI's master circular does not grant CBI the power to register or investigate cases, and Section 35A of the Banking Regulation Act does not extend such authority.
Senior Advocate Professor Ravivarma Kumar, representing the state-run Corporation, supported the state's stance.
He argued that the CBI's authority is limited to investigating crimes that are specifically notified and that the bank's plea to transfer the case to CBI was unfounded as the issue lies within the state's jurisdiction.
Attorney General R Venkataramani, representing Union Bank of India, argued for the necessity of transferring the probe to the CBI to safeguard the integrity of the banking system.
He contended that RBI's directions under Section 35A should be interpreted broadly to include CBI investigations, especially in cases involving potential bank frauds.
Venkataramani stressed that banking institutions are crucial to the nation's economic stability, and specialised agencies like the CBI are better suited to handle such sensitive cases.
The illegal money transfer scam involving Corporation came to the fore, after its accounts superintendent, Chandrasekharan P, died by suicide on May 26, leaving behind a note.
After the scam came to light, Congress MLA B Nagendra resigned as the Scheduled Tribes Welfare Minister in June. The ED had in July arrested Nagendra under the provisions of the Prevention of Money Laundering Act (PMLA), and also five other key accused during the investigation. He was released on bail last month.
The ED had said its investigation revealed that under the influence of Nagendra, the account of the corporation was moved to the MG Road Branch (of the bank) without any proper authorisation, where Rs 187 crore, including Rs. 43.33 crore from the State Treasury under the 'Ganga Kalyana Scheme', were deposited without following proper procedures and in violation of government guidelines.
These funds were subsequently siphoned off through multiple shell accounts and converted into cash and bullion. ED investigation also revealed that an amount of Rs 20.19 crore of the diverted funds was used to support a candidate contesting the 2024 Lok Sabha election from the Bellary constituency, as well as for the personal expenses of Nagendra, the federal probe agency has said.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Cong takes swipe at PM over India not being part of US-led 'Pax Silica' grouping
New Delh (PTI) The Congress on Saturday said it is perhaps not very surprising that India is not part of a US-led strategic initiative to build a secure silicon supply chain, given the "sharp downturn" in the Trump-Modi ties, and asserted that it would have been to "our advantage if we had been part of this group".
Congress general secretary in charge of communications Jairam Ramesh took a swipe at Prime Minister Narendra Modi, saying the news of India not being part of the group comes after the PM had enthusiastically posted on social media about a telephone call with his "once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC".
In a lengthy post on X, Ramesh said, "According to some news reports, the US has excluded India from a nine-nation initiative it has launched to reduce Chinese control on high-tech supply chains. The agreement is called Pax Silica, clearly as a counter to Pax Sinica. The nations included (for the moment at least) are the US, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia."
"Given the sharp downturn in the Trump-Modi ties since May 10th, 2025, it is perhaps not very surprising that India has not been included. Undoubtedly, it would have been to our advantage if we had been part of this group."
"This news comes a day after the PM had enthusiastically posted on his telephone call with his once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC," the Congress leader asserted.
The new US-led strategic initiative, rooted in deep cooperation with trusted allies, has been launched to build a secure and innovation-driven silicon supply chain.
According to the US State Department, the initiative called 'Pax Silica' aims to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence (AI), and ensure aligned nations can develop and deploy transformative technologies at scale.
The initiative includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. With the exception of India, all other QUAD countries -- Japan, Australia and the US -- are part of the new initiative.
New Delhi will host the India-AI Impact Summit 2026 on February 19-20, focusing on the principles of 'People, Planet, and Progress'. The summit, announced by Prime Minister Narendra Modi at the France AI Action Summit, will be the first-ever global AI summit hosted in the Global South.
Prime Minister Modi and US President Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal.
The phone call between the two leaders came on a day Indian and American negotiators concluded two-day talks on the proposed bilateral trade agreement that is expected to provide relief to India from the Trump administration's whopping 50 per cent tariffs on Indian goods.
In a social media post, Modi had described the conversation as "warm and engaging".
"We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity," Modi had said without making any reference to trade ties.
