Valmiki corp scam: Court denies bail to ex-min’s associate

Bengaluru: A sessions court recently denied bail to Nekkunti Nagaraj, an accused in the Rs 94-crore Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited (KMVSTDCL) scam. The scam brought major embarrassment to the state govt as B Nagendra, the then tribal welfare minister, resigned from the Siddaramaiah-led Congress govt.
According to sources from SIT probing the scam, Nagaraj is a close aide of Nagendra.Nagaraj, accused no. 10 in the case, was arrested by SIT and was in police custody for 15 days. Later, he was remanded in judicial custody and sent to jail. He approached the court, requesting bail. However, the court denied his bail request last week. The prosecution contended that Nagaraj allegedly received gold from jewellery shops, along with another accused, Satyanarayana Itakari. The jewellery shops received money from the bank accounts to which the Valmiki corporation’s funds were transferred. He allegedly pressurised officials of the corporation to deposit funds in the bank and to transfer the bank account from Vasanthanagar to MG Road branch. However, Nagaraj’s counsel argued that their client was innocent and that the police had already completed his interrogation. They also contended that the police did not seize any money or materials related to the fraud from Nagaraj’s residence.
The court observed that that the investigation is at a preliminary stage, and he may threaten prosecution witnesses and tamper with evidence. Therefore, the court dismissed his bail plea.