Bengaluru/New Delhi
Just 25 days into his reinduction into the Cabinet under the new Chief Minister D.K. Shivakumar, Karnataka’s Minister for Planning and Statistics, B. Nagendra, on Friday resigned from his post amid mounting opposition pressure on the ruling dispensation and also disgruntlement within the State Congress over his induction into the Ministry.
He also decided to quit the membership of the Karnataka Legislative Assembly and challenged the BJP to face him in the Ballari Rural (ST) constituency.
Maintaining that his resignation was voluntary, Nagendra announced, “I am resigning of my own will to avoid the embarrassment that may cost my party because of unnecessary allegations made by the opposition party against me.” Addressing media persons, Nagendra broke down and said they (BJP) can’t scare him with the ED and CBI. In the same vein in an apparent reference to the BJP, he said the ‘Manuvadis’ don’t want a tribal man to grow.
Nagendra, sources said, had a couple of days ago spoken to Shivakumar over the phone and offered to resign, stating that his continuation in the Cabinet was unnecessarily causing embarrassment to the party.
He is learnt to have told the Chief Minister that the BJP was targeting him and that he was willing to step down in the interest of the party’s image. The development comes against the backdrop of the BJP’s Raichur-to-Ballari padyatra plans, repeated disruptions in the Legislative Assembly and the abrupt conclusion of the Assembly session over Nagendra’s induction into the Cabinet.
Nagendra had recently defended his position at a press conference, alleging that the Opposition was targeting him because he was a Dalit (he uses it for broader reference of the oppressed castes) leader. He had maintained that he was only an accused and not a convict, and questioned the BJP’s continued criticism of his induction into the Cabinet.
Shivakumar is learnt to have told Nagendra that he would convey his decision to the Congress high command and seek its approval before accepting the resignation. The high command had been closely involved in the recent Cabinet expansion exercise, and the Chief Minister was understood to be awaiting its green signal.
The issue has also reportedly added to internal pressure within the Congress. Several senior leaders who were left out of the recent Cabinet expansion were said to be unhappy with the party leadership and questioned the decision to induct Nagendra into the ministry.
The Karnataka unit of the BJP, for its part, has announced to undertake a 200‑km padayatra from Raichur to Ballari between September 1 and 10 to highlight what it calls the failures of the government in the state. Ballari is the native district of Nagendra and the padyatra’s main focus was to be on his resignation.
What’s the issue all about?
The Karnataka tribal welfare scam centres on the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, which manages funds intended for the economic and social development of Scheduled Tribes.
The scandal came to light in 2024 after corporation accounts superintendent P Chandrasekharan died by suicide and left allegations of large-scale financial irregularities. The CBI’s investigation has since alleged that Rs 89.63 crore was actually diverted through forged cheques and RTGS transactions and subsequently moved through about 600 bank accounts. The larger Rs 187-crore figure represents money pooled into the corporation’s account, rather than the amount ultimately established as diverted.
The financial dimension is particularly serious because the money was meant for a community-specific welfare programme but allegedly ended up being routed through bogus accounts and converted into cash, bullion and luxury assets.
The CBI has chargesheeted 30 people, including Nagendra, alleging that he received Rs 1.20 crore through intermediaries and benefited from a vehicle bought with diverted funds. The investigation has also uncovered alleged irregularities in other government-linked contracts and schemes. These remain allegations contained in investigative proceedings and must not be treated as a judicial finding of guilt.
Politically, the case has grown into a larger confrontation between the Congress government and the BJP. Nagendra resigned as tribal welfare minister when the scandal erupted, but his subsequent political rehabilitation revived the controversy.
The BJP demanded his removal and staged protests in Bengaluru, while Nagendra denied wrongdoing. The CBI’s latest move to seek the Governor’s sanction to prosecute Nagendra has given the controversy a fresh political and legal edge.
