A special court for public representatives in Karnataka on Wednesday granted anticipatory bail to former state minister and Congress MLA B Nagendra in connection with the high-profile Karnataka Valmiki Scheduled Tribes Development Corporation corruption case. The order offers temporary relief to the senior politician amid continuing investigations by multiple central agencies into alleged large-scale financial irregularities.

The court imposed strict conditions while granting anticipatory bail, directing Nagendra to execute a personal bond of ₹2 lakh along with two sureties of the same amount. It also clearly instructed him not to intimidate, influence or contact witnesses connected with the case, and to cooperate fully with the ongoing investigation.

Relief After Fears of Arrest

Nagendra moved the court seeking anticipatory bail after receiving a notice from the Central Bureau of Investigation (CBI), which had recently taken over the probe into the alleged scam. People close to the former minister said the application was filed out of apprehension that he could be arrested following the summons.

“We feared arrest due to the summons issued by the CBI, and the court’s order has provided temporary relief,” sources close to Nagendra said after the order was pronounced.

The special court had heard detailed arguments from both sides on January 13 and reserved its order on January 14. On Wednesday, it granted anticipatory bail, ensuring that Nagendra will not be taken into custody at this stage while the investigation continues.

What the Investigation Officer Told the Court

During the hearing, the investigation officer placed details of the probe before the court, outlining the scale and complexity of the alleged corruption. According to submissions made by the officer, multiple agencies, including the Criminal Investigation Department (CID) and the Enforcement Directorate (ED), have already investigated the beneficiaries of the alleged Valmiki scam.

The officer told the court that further efforts were underway to identify all recipients of the diverted funds. He also informed the judge that some aspects of the investigation could not be disclosed in open court due to their sensitive nature.

Raids were conducted in Mumbai as part of the probe, the officer said, adding that the allegedly siphoned-off money was converted into gold and bullion to conceal the financial trail. He further alleged that Nagendra, his associates and certain shell companies were involved in the diversion and laundering of funds.

To support these claims, the investigation officer reportedly produced two suitcases filled with documents before the court, indicating the volume of material collected so far.

Defence Denies Allegations

Nagendra’s defence team strongly contested the prosecution’s claims, maintaining that the former minister had no role in the alleged corruption. His lawyers argued that the financial transactions cited by the CBI were personal in nature and unrelated to any government tenders or contracts.

“The transactions between B Nagendra and Nekkanti Nagaraj were purely personal. They have no connection with the tenders or contracts cited by the CBI. My client is not involved in the alleged corruption,” the defence counsel submitted before the court.

The defence also stressed that Nagendra had cooperated with authorities and had no intention of evading the investigation, arguing that custodial interrogation was unnecessary at this stage.

ED Action and Allegations in the Case

The anticipatory bail order comes against the backdrop of significant action already taken by the Enforcement Directorate. Earlier, the ED had attached immovable properties worth ₹8.07 crore allegedly belonging to Nagendra in connection with the case. The agency has accused him of benefiting from illegal transfers and money laundering linked to the Valmiki Development Corporation.

According to investigators, the case involves illegal transfers of funds from bank accounts of the Karnataka Valmiki Scheduled Tribes Development Corporation to fake or unauthorised accounts. The money was allegedly routed through a network of shell companies and eventually siphoned off for personal gain.

The alleged scam has drawn widespread attention because the Valmiki Development Corporation is meant to implement welfare schemes for Scheduled Tribes, and the diversion of funds is seen as a direct blow to marginalised communities.

What the Court’s Order Means

With the grant of anticipatory bail, B Nagendra will not face immediate arrest, but the relief is conditional and does not amount to a clean chit. The court’s order ensures his liberty while making it clear that the investigation by the CBI and ED will continue unhindered.

Authorities are still tracing assets, examining bank records and following financial trails linked to the alleged scam. Officials have indicated that further questioning and possible legal action against other individuals may follow as the probe progresses.

For Nagendra, the court’s decision offers breathing space in a case that carries serious political and legal implications. For investigators, the order does not dilute their mandate to pursue the case, gather evidence and place their findings before the court.

As the multi-agency investigation continues, the Valmiki Development Corporation case is expected to remain under intense public and political scrutiny in Karnataka in the coming weeks.