Bengaluru, Oct 15: Chief Minister Siddaramaiah on Tuesday said the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, where misappropriation of funds was reported earlier this year, will face no shortage of funds.

"The misappropriation of funds in the Valmiki Corporation should not be a reason for any shortage of funds for the tribal development," Siddaramaiah told reporters after a meeting on tribal development.

The government will sanction the funds to the Corporation as announced in the Budget in February this year, he said.

Siddaramaiah said there was misappropriation of funds to the tune Rs 89.63 crore, out of which Rs 71.54 crore has been recovered.

The ED had earlier arrested Congress MLA B Nagendra and five other key accused during its probe into the 'scam' at the Corporation.

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Nagendra was granted bail by the Special Court for People's Representatives here on Monday.

He had resigned as the Scheduled Tribes Welfare Minister in June following allegations of his involvement in the 'scam.'

The ED said last week Nagendra has been identified as the primary accused and mastermind behind the scam, allegedly orchestrating it with the help of 24 others.

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 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 B. Nagendra,” the federal probe agency added.

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Srirangapatna (Karnataka), Nov 24: The Leader of Opposition in the Karnataka Assembly R Ashoka on Sunday said the Congress party’s victory in the bypolls held for three assembly constituencies is not a clean chit to Chief Minister Siddaramaiah in the MUDA scam.

He said the case is still going on in the court of law.

“MUDA case against Chief Minister Siddaramaiah is still in court but he is calling the bye-election result itself as a clean chit. Only courts can give clean chit and not the elections,” Ashoka said while addressing a gathering in Taggalli in Srirangapatna.

Later, speaking to reporters, Ashoka said results of the bypoll held for three assembly constituencies of Channapatna, Shiggaon and Sandur is a victory of money and not a victory of Congress. The BJP leader said his party’s fight will continue against the corruption of the Congress government.

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Separately, in a post on social media ‘X’, Ashoka said the ruling Congress is under the illusion that they have won three worlds just by winning the by-election by diverting money and winning the votes of one community through appeasement politics.

He took a dig at Siddaramaiah for his statement that the opposition had spread lies with regard to the allegation of "Rs 89 crore embezzlement" in the Karnataka Maharshi Valmiki Scheduled Tribe Development Corporation.

“Didn't you yourself admit in the Karnataka assembly that crores of money were misappropriated in the Valmiki Corporation, is that a lie?” Ashoka questioned.

He has also asked the CM whether returning of 14 sites by his wife Parvathi B M in the MUDA scam was an indirect confession of his crime. “Is it a lie when the Karnataka High Court loudly said that an investigation is needed against you in the MUDA scam?” the BJP leader asked.

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