Union Minister and JD(S) leader HD Kumaraswamy on Saturday accused the Congress government in Karnataka of getting B Nagendra to resign to avoid embarrassment over the alleged Valmiki Corporation financial irregularities case.Kumaraswamy's remarks came a day after Nagendra stepped down from the Karnataka Cabinet. The former minister said he was resigning voluntarily to prevent the controversy from causing embarrassment to the Congress party.“Nagendra has said he resigned to avoid embarrassment to Congress. Why is Congress embarrassed? Did Congress make him resign to escape embarrassment in the ₹87 crore case?” Kumaraswamy said on Saturday.The allegations relate to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, where investigators have examined the alleged diversion of funds from the corporation's accounts.

What is the Valmiki Corporation case?

The controversy centres on the alleged transfer of ₹89.63 crore from an account of the state-run corporation with Union Bank of India to multiple accounts between February and May 2024. The case triggered a major political row in Karnataka.Nagendra, who was the state's Tribal Welfare Minister when the controversy emerged, had resigned from the Cabinet in 2024. He was later reinducted into the Karnataka Cabinet on August 3, 2026, and was given the Planning and Statistics portfolio.His reinduction prompted renewed protests from the BJP and JD(S), who demanded his removal and intensified their campaign against the Congress government.

Nagendra says resignation was voluntary

Nagendra has rejected allegations that he was forced out because of the case. While announcing his resignation, he said he was stepping down voluntarily to ensure that the controversy did not damage the Congress party or affect the government's functioning.He has also maintained that he is innocent and alleged that the opposition was using the case for political purposes.Chief Minister DK Shivakumar said Nagendra had submitted his resignation to avoid embarrassment to the Congress party, while indicating that the final decision would be taken after consultations with the party high command.Kumaraswamy, meanwhile, alleged that Congress leaders were attempting to shield themselves from the political fallout of the controversy.He also dismissed allegations against himself in another matter as politically motivated and said he was ready to face an investigation.The latest exchange adds to the political confrontation between the Congress government and the BJP-JD(S) opposition alliance over the Valmiki Corporation case.