The Karnataka High Court has eased bail conditions for Minister B Nagendra, allowing unrestricted travel within India while still requiring trial‑court permission for any foreign trip. The decision comes amid ongoing investigations by the ED and CBI into the Rs 94.73 crore Valmiki corporation fraud.

  • The High Court lifted domestic travel restrictions for Minister B Nagendra.
  • International travel still requires trial‑court permission.
  • ED and CBI investigations into the Valmiki scam continue.

Court’s New Order

On August 14, Justice M. Nagaprasanna of the Karnataka High Court diluted the bail condition that required Minister B Nagendra to obtain the trial court’s permission before leaving the state. He stated, “Denying him the freedom to travel within the country would curtail his liberty and the position he holds today.”

Background of the Case

Four‑time MLA from Bellary Rural, Nagendra is accused in a money‑laundering case linked to the alleged Rs 94.73 crore Valmiki corporation scam. He resigned as a minister in June 2024 after allegations of fund misappropriation, but was re‑inducted into the cabinet on August 3, 2026.

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Legal Proceedings

The Enforcement Directorate (ED) has asked the High Court to cancel Nagendra’s bail, while the Central Bureau of Investigation (CBI) filed a chargesheet in June 2026 naming him and others for the alleged diversion of Rs 89.63 crore. Senior advocate K N Phanendra argued that, given his ministerial duties, Nagendra would need to travel beyond the state and should not be forced to seek permission repeatedly.

Historical Background

The Valmiki corporation scam surfaced on May 26, 2024, after an accounts officer committed suicide following the disappearance of a portion of Rs 187 crore deposited from the state treasury. A Special Investigation Team (SIT) traced the siphoned funds to 18 primary accounts in Telangana and Andhra Pradesh, allegedly set up by Satyanarayana Verma, who is also implicated in a similar 2022 Chhattisgarh scam. The money was then routed through over 170 secondary accounts before being withdrawn.

Why This Matters

BozokMedia analysis shows that relaxing travel restrictions for a minister under investigation sends a strong signal about political influence over judiciary processes, potentially affecting public trust in anti‑corruption institutions.

“Such judicial leniency in high‑profile corruption cases can undermine the perceived independence of the legal system.”
Did You Know?: The Valmiki fraud involves figures also linked to a major 2022 scam in Chhattisgarh, highlighting a network of inter‑state financial misconduct.

Frequently Asked Questions

Q: What are the conditions of Nagendra’s bail?
A: He may travel freely within India, but any travel abroad requires explicit permission from the trial court.

Q: How does the Valmiki scam impact Karnataka’s politics?
A: The scandal exposes potential misuse of public funds, eroding public confidence and creating political volatility ahead of upcoming elections.