The Karnataka High Court has modified the bail conditions for State Cabinet Minister B Nagendra, allowing him to travel anywhere within India without obtaining prior permission from the trial court in connection with an ongoing money-laundering case.
Court Relaxes Travel Restrictions
In an order issued on August 14, Justice M Nagaprasanna ruled that requiring Nagendra to seek court approval for every out-of-state trip within the country would unduly restrict his personal liberty and interfere with his official duties as a government minister. The court clarified, however, that Nagendra remains prohibited from traveling outside India without obtaining explicit permission from the trial court.
Arguments Over Bail Conditions
Representing Nagendra, Senior Advocate K N Phanendra argued that the minister’s official responsibilities necessitate frequent travel beyond Karnataka, making routine permission applications impractical.
Additional Solicitor-General Aravind Kamath opposed the relief, pointing out that Nagendra had consistently sought travel clearances from the trial court for the past two years and should have petitioned that court for any relaxation of his bail conditions.
Meanwhile, a separate application filed by the Enforcement Directorate seeking the complete cancellation of Nagendra’s bail remains pending before the high court.
Background Of Valmiki Scam
Nagendra was re-inducted into the Karnataka Cabinet on August 3, having previously resigned in June 2024 following allegations of financial misappropriation at the Karnataka Maharshi Valmiki Scheduled Tribes Corporation Limited.
The Enforcement Directorate subsequently arrested Nagendra, while the Central Bureau of Investigation filed a chargesheet in June naming him and several others in connection with the alleged fraudulent diversion of Rs 89.63 crore from the corporation.
Details Of Investigation
The broader Rs 94.73-crore scandal came to light on May 26, 2024, after a corporation accounts officer died by suicide. The incident exposed the disappearance of funds out of a Rs 187-crore deposit held in a Union Bank of India account on Bengaluru’s M G Road.
A police Special Investigation Team found that funds were siphoned into 18 primary accounts in Telangana and Andhra Pradesh. Investigators traced these accounts to Satyanarayana Verma and his associates, who are also implicated in a 2022 financial scam in Chhattisgarh. The diverted money was routed through more than 170 secondary accounts before being withdrawn.
The Special Investigation Team was probing the roles of Nagendra and Congress MLA Basanagouda Daddal, who served as the corporation’s chairman, when the Enforcement Directorate initiated its money-laundering investigation.
