Wed Jul 02 13:54:09 UTC 2025: Here’s a summary and a rewritten news article based on the provided text:
**Summary:**
The Karnataka High Court has granted the Central Bureau of Investigation (CBI) permission to expand its investigation into a fraud case involving the misappropriation of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. The expansion includes probing the diversion of funds from the Karnataka German Technical Training Institute (KGTTI) and additional funds from the Valmiki Corporation through different banks. The court has also directed other investigating agencies (SIT, ED, Forensic Labs) to share relevant documents with the CBI. This decision was made while hearing a petition seeking the transfer of the Valmiki Corporation case to the CBI.
**News Article:**
**CBI Expands Probe into Karnataka Development Fund Fraud, Court Orders Cooperation**
**Bengaluru, July 2, 2025:** The Central Bureau of Investigation (CBI) has been given the green light by the Karnataka High Court to broaden its investigation into the massive fraud case involving the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. The move comes as the CBI uncovers evidence of further fund diversions.
Justice M. Nagaprasanna granted the CBI’s request on July 1st, allowing the agency to investigate the alleged diversion of funds from the Karnataka German Technical Training Institute (KGTTI) into the network of misappropriated funds. The CBI’s initial investigation, stemming from a complaint filed by the Union Bank of India (UBI), focused on the alleged embezzlement of over ₹89 crore. Now, the probe will also encompass the diversion of ₹95 lakh from the KGTTI’s Canara Bank account and an additional ₹2.17 crore from the Valmiki Corporation’s account in the Bank of Baroda (BoB), all allegedly routed to accused individual Nekkanti Nagaraj.
The court order compels the Special Investigation Team (SIT) of the Criminal Investigation Department (CID), the Enforcement Directorate (ED) which is looking into possible money laundering, and both central and state forensic science laboratories to provide the CBI with certified documents and forensic images of all seized digital devices related to the case.
The decision was made while hearing a petition filed by MLA Basanagouda R. Patil Yatnal and others in November 2024, who sought the transfer of the case from the CID’s SIT to the CBI. Justice Nagaprasanna, in his interim order, stated that expanding the investigation was necessary to bring it to a logical conclusion. Further hearings on the petition have been adjourned. This expansion signals a significant development in the ongoing effort to uncover the full extent of the financial malfeasance within the Karnataka development funds.
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