B Nagendra Resigns Again: Tears, Rs 89 Crore Valmiki Case and Karnataka Political Storm

Karnataka Minister B Nagendra resigned from the DK Shivakumar-led cabinet after renewed Opposition pressure over the alleged Rs 89 crore Valmiki Corporation fund irregularity case. The Congress leader broke down during his announcement, making it his second resignation from the state government over the same controversy.

Post Published By: Subhash Raturi
Updated : 28 August 2026, 7:38 PM IST

Bengaluru: Karnataka Congress leader B Nagendra has resigned from the state cabinet amid a renewed political storm over the alleged Maharshi Valmiki Scheduled Tribes Development Corporation fund irregularity case. The minister broke down while announcing his decision, saying he was stepping down voluntarily to protect the image of the government and party.

Nagendra’s resignation has intensified the political battle between the ruling Congress and Opposition BJP-JD(S) alliance in Karnataka. The controversy, linked to alleged diversion of nearly Rs 89 crore from a government corporation, had first forced Nagendra to quit the cabinet in 2024. His return to the government earlier this month had once again brought the issue back into the spotlight.

The latest resignation has created fresh challenges for Chief Minister DK Shivakumar’s government as the Opposition prepares a major campaign targeting the Congress over corruption allegations.

Valmiki Corporation Case: The Controversy That Returned After Two Years

The Valmiki Corporation controversy began in May 2024 after P Chandrasekharan, an accounts superintendent at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, died by suicide.

A note left behind by Chandrasekharan alleged unauthorised movement of corporation funds. Investigations later revealed that around Rs 89.63 crore was transferred from the corporation’s account to another bank account before being moved through multiple accounts.

The allegations created a major political crisis for the Congress government. At the time, B Nagendra was serving as the Tribal Welfare Minister under Siddaramaiah’s leadership.

Facing pressure from the Opposition and demands for accountability, Nagendra resigned from the cabinet in June 2024.

Nagendra’s Cabinet Return Sparked Fresh Opposition Attack

After DK Shivakumar became Karnataka Chief Minister, Nagendra was brought back into the cabinet on August 3 and assigned the Planning and Statistics portfolio.

His comeback was seen as Congress’ continued support for the influential tribal leader from Ballari. However, the decision immediately triggered criticism from the BJP and JD(S).

The Opposition accused the Congress government of ignoring corruption allegations and repeatedly demanded Nagendra’s removal.

The issue dominated the Karnataka Assembly monsoon session, where BJP leaders protested against his continuation in the cabinet. The session witnessed repeated disruptions, with the Opposition insisting that Nagendra’s return raised questions about accountability.

Emotional Exit: Nagendra Denies Allegations, Claims Political Targeting

While announcing his resignation, Nagendra rejected allegations of involvement in the alleged financial irregularities. He questioned why he was being held responsible for transactions involving multiple officials and institutions and claimed that he was being targeted for political reasons.

Nagendra also alleged that he was facing attacks because he belongs to the Dalit community. He maintained that he had faith in the investigation process and said he did not want the controversy to harm the Congress government. The Minister said he was resigning by his own decision and not because of pressure from the party leadership.

BJP Plans Karnataka Padayatra, Opposition Pressure Intensifies

Nagendra’s resignation came just days before the BJP’s planned 10-day padayatra from Raichur to Ballari. The BJP and JD(S) have announced the march from September 1 to 10 to highlight corruption allegations against the Congress government, including the Valmiki Corporation case.

The Opposition has argued that Nagendra’s resignation validates its demand for accountability. The Congress, however, has maintained that the allegations are politically motivated and that investigations should determine the truth. Union Minister Pralhad Joshi is expected to inaugurate the BJP campaign, making the issue a major political flashpoint in Karnataka.

Congress Defends Nagendra, Calls Allegations Political

Congress leaders have continued to defend Nagendra, saying that the Opposition is using the case to attack the government. The party has argued that an ongoing investigation cannot be treated as proof of wrongdoing and that due process must be followed.

Nagendra has also challenged his political opponents and said he is ready to face public scrutiny. The Congress government now faces the challenge of managing political damage while ensuring that the controversy does not become a larger issue ahead of future elections.

Why Nagendra’s Resignation Matters For Karnataka Politics

The controversy has gained importance because Nagendra is considered an important tribal leader from Ballari and has influence among Scheduled Tribe voters.

For the BJP, the issue has become an opportunity to attack the Congress government on corruption and governance. For Congress, the challenge is to balance political defence, investigation procedures and community representation. The resignation has once again pushed corruption allegations, political accountability and tribal leadership into the centre of Karnataka’s political debate.

Location :  New Delhi

Published :  28 August 2026, 7:38 PM IST