In a significant development, the Karnataka High Court on Tuesday ordered a full-fledged investigation by the Central Bureau of Investigation (CBI) into the alleged multi-crore scam involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.
Earlier, the CBI’s involvement was limited to examining specific irregularities, but the court has now directed that all case-related documents, evidence, and materials be transferred by the state’s Special Investigation Team (SIT) to the central agency for a comprehensive probe.
The case pertains to serious allegations of embezzlement and diversion of funds earmarked for the welfare of Scheduled Tribe (ST) communities in the state. The Corporation, established in 2006, was intended to implement development schemes to uplift the socio-economic status of ST populations.
In June, the Enforcement Directorate (ED) conducted a series of raids under the Prevention of Money Laundering Act (PMLA) at premises linked to Congress MP E. Tukaram from Bellary and three Karnataka MLAs. The searches reportedly unearthed evidence of a suspected nexus involving the siphoning of funds through fake bank accounts and shell companies.
Investigators suspect that a significant portion of the laundered money was funneled into election-related activities, including the 2024 Lok Sabha polls in the Bellary constituency.
The High Court’s order expands the scope of the investigation and reinforces the seriousness of the allegations. Multiple FIRs had already been registered by the Karnataka Police and the CBI, but this directive is expected to centralize and expedite the probe into the suspected misuse of public welfare funds.
