The High Court of Karnataka on Thursday ordered issue of notice to Ballari Rural MLA and former Minister B. Nagendra on a petition filed by the Central Bureau of Investigation (CBI), which sought cancellation of anticipatory bail granted by the special court in a fraud case involving the alleged misappropriation of over ₹89 crore of the State-run Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd.
Justice S. Sunil Dutt Yadav, who heard the CBI’s petition, adjourned further hearing till January 29 asking the investigation agency to serve notice on Mr. Nagendra.
The Special Court of Sessions for Criminal Cases against Former and Present MPs and MLAs had on January 14 granted anticipatory bail by observing that the CBI did not produce materials to show that Mr. Nagendra was involved in various misappropriation of funds or on requirement of his custodial interrogation even though he had responded to several notices issued to him by the CBI.
Women and ornaments
CBI’s advocate P. Prasanna Kumar told the court that the certain funds from Valmiki corporation’s bank account were transferred to the accounts of two women in Mumbai, who in turn purchased ornaments from that money. Mr. Nagendra, who was then the Minister for Scheduled Tribes Welfare, Youth Empowerment and Sports, had overnight met these women in Mumbai.
Stating that Mr. Nagendra was non-cooperative for the probe, the CBI said that grant of anticipatory bail to him had hindered the High Court-monitored probe, it was argued, while pointing out that the CBI was also required to submit regular status report on the investigation into the case. The special court erred in its finding even though the CBI had submitted investigation materials before it, the High Court was informed.
Case background
The CBI is probing the case on a complaint lodge by the Union Bank of India on the alleged involvement of its staff in the alleged fraud and the scope of the probe was expanded by the High Court in July 2025, allowing the CBI to probe the diversion of funds of the Karnataka German Technical Training Institute, Bengaluru, and the diversion of around ₹2.17 crore of the Valmiki corporation through an account maintained with the Bank of Baroda.
Published – January 22, 2026 07:51 pm IST
