The High Court of Karnataka on Monday refused to quash a criminal case against G. Satyanarayana Varma, a Hyderabad-based civil contractor, who has been described as ‘kingpin’ in the case involving misappropriation of over ₹89 crore of the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd.
“The chargesheet paints the petitioner not as a passive bystander, but as the very kingpin of the fraudulent design. The wealth of detail in the investigation, recovery of cash and gold, and the labyrinth of transactions alleged are all matters demanding the crucible of a full trial,” the court observed.
Justice M. Nagaprasanna passed the order while dismissing the second petition filed by Varma, whose first petition questioning the legality of his arrest was dismissed.
“This court finds no scintilla of merit in the present petition. Law cannot bend to repeated challenges, devoid of new substance nor can it ignore the gravity of allegations that undoubtedly wants an adjudication in a full trial,” the court said.
Noticing that ₹8 crore in cash and 5 kg of gold were found in the house of the petitioner, the court said the explanation for it had not come forward, and even if it had come forward, it had to be tested in evidence during the trial.
The money that had to be spent for the uplift of Scheduled Tribes, the avowed objective with which the Valmiki corporation was created, was allegedly swindled by the accused named in the chargesheet, the court noted.
The allegation against the petitioner is that about ₹90 crore was fraudulently transferred from the account of the corporation to accounts opened in the names of fictitious business entities with the help of the petitioner, who also allegedly received part of the money through the other accused in the form of cash and gold.
Published – September 01, 2025 08:45 pm IST
