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Congress rehired, ED still alleging

Karnataka’s Congress brought B. Nagendra back to the cabinet on 3 August. The ED’s Valmiki Corporation case against him didn’t go anywhere — except forward.

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A ministerial chair is restored beside a large ED case file moving forward on a conveyor belt, while a treasury pipe labelled ST welfare funds leads toward locked shell-account drawers and empty legislative benches sit in the background.

B. Nagendra returned to the Karnataka cabinet while the ED case against him remains pending.

Illustration generated from an editorial brief

Karnataka minister B. Nagendra was re‑inducted on 3 August 2026 in the Congress government led by D.K. Shivakumar, and later handed Planning and Statistics. This is while he remains an accused in the Enforcement Directorate’s Valmiki Corporation money‑laundering case — not acquitted, not cleared. According to the ED’s October 2024 prosecution complaint, ₹187 crore, including ₹43.33 crore from the state treasury under Ganga Kalyana, was deposited into an unauthorised account and then routed through shell accounts; an earlier ED note pegs the alleged misappropriation at ₹89.62 crore and says about ₹90 crore went to fake accounts in AP and Telangana. These are the agency’s allegations, not a conviction.

The ED also alleges the corporation’s account was shifted to an MG Road branch “under the influence of B. Nagendra” and that ₹20.19 crore of the diverted funds covered election support in Ballari and Nagendra’s expenses — again, the ED’s claim on record.

Nagendra says he did nothing wrong and claims almost all siphoned money was recovered. The courts didn’t say the case is over: he got bail, and on 20 August 2026 the Karnataka High Court only relaxed his within‑India travel permission as a serving minister; foreign travel still needs permission.

Meanwhile, BJP and JD(S) stalled the Karnataka legislature demanding his exit, and the monsoon session was cut short after disruptions, as reported. Congress leaders said the Opposition should debate instead. Telangana’s interest here is simple: this is ST welfare money in the neighbouring Congress‑run state tied up in an ED case, while its minister is back in the chair. The BJP talks a storm in Bengaluru but delivers little beyond placards; the TDP is busy elsewhere. The Congress government in Karnataka has not bothered to explain why re‑inducting an accused minister serves ST beneficiaries better than finishing the trial.

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