Daijiworld Media Network - Bengaluru
Bengaluru, July 1: In a major development that spells trouble for the Congress-led Karnataka government, the Karnataka High Court on Tuesday directed the Central Bureau of Investigation (CBI) to take over the probe into the high-profile Valmiki ST Development Corporation scam, escalating the case into a full-fledged national investigation.
The order marks a major setback for Chief Minister Siddaramaiah, as the case has already drawn political heat due to its links to several senior Congress leaders and MLAs.
HC expands scope of investigation
Until now, the CBI had a limited role, probing only specific irregularities in the multi-crore scam involving the misuse of funds earmarked for the welfare of Scheduled Tribes under the Valmiki Development Corporation.
However, the High Court has now expanded the scope, instructing the Special Investigation Team (SIT) — previously handling the case under the state government — to hand over all records and case materials to the CBI for a comprehensive probe. This effectively removes the case from state control and places it in the hands of the central agency.
Scam involving diversion of funds for ST welfare
The Valmiki ST Development Corporation scam, which surfaced earlier this year, centres around the alleged embezzlement of funds meant for the upliftment of Scheduled Tribes in Karnataka. Reports suggest that crores of rupees were diverted through fake accounts, shell companies, and unauthorised withdrawals.
ED raids and political fallout
In June, the Enforcement Directorate (ED) intensified its probe under the Prevention of Money Laundering Act (PMLA), carrying out raids on multiple locations linked to Congress MP E Tukaram from Ballari and three sitting Congress MLAs. The ED suspects the scam involved layers of money laundering, with political connections enabling the fraudulent transactions.
The BJP and JD(S) have repeatedly targeted the Congress government, accusing it of protecting the accused and suppressing the investigation.
Political & legal implications
The High Court's decision to hand over the case to the CBI is being seen as a loss of face for the Siddaramaiah administration, which had entrusted the SIT with the investigation. Legal experts say the court's move indicates a lack of confidence in the neutrality or effectiveness of the state probe.
The CBI is now expected to reopen multiple angles in the case, including political links, bureaucratic involvement, and cross-state money trails.
This development could have serious political ramifications ahead of upcoming bypolls and local body elections in Karnataka, where the scam has already dented the Congress’s credibility on governance and corruption.