

The Karnataka High Court on Thursday relaxed travel restrictions imposed on Cabinet Minister B Nagendra in a 2024 order granting him bail in the alleged Valmiki Corporation scam case [B Nagendra v The Directorate of Enforcement].
Justice M Nagaprasanna modified Nagendra's bail terms to permit him to travel outside Karnataka and anywhere within India. However, the Minster continues to be restrained from travelling out of the country unless he gets permission from the Court to do so.
The Court passed the order after nothing that since Nagendra holds a cabinet position, he should be permitted to travel outside the State of Karnataka and within India.
"The petitioner being a cabinet minister is admitted fact. In light of the ministerial position, and holding A portfolio or B portfolio would necessitate travel beyond jurisidction. The petitioner is free to travel within the country as not permitting travel would undoubtedly curtail his liberty and the position that he is holding today," the Court said.
B Nagendra currently holds the Planning and Statistics portfolio in Chief Minister DK Shivakumar's cabinet.
He is among those accused in the Valmiki Corporation scam, which relates to allegations of the illegal diversion of funds from the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation, meant for the welfare of Scheduled Tribe communities.
The alleged scam came to light when the Valmiki Corporation’s account superintendent, Chandrashekhar, died by suicide at his residence. Chandrashekhar left behind a note alleging the misappropriation of the welfare funds.
Nagendra, who was then Karnataka’s Scheduled Tribes Welfare Minister, resigned after the allegations surfaced.
Nagendra was arrested by the Enforcement Directorate (ED) after an extensive search operation by the central agency following the allegations of misappropriation of funds.
The ED has described him as a key accused, while the CBI, in June 2026, chargesheeted Nagendra and 29 others, alleging that he conspired in the diversion of funds and also received illegal gratification in connection with a tender.
He was granted conditional bail in October 2024 by a special court in Bengaluru. One of his bail conditions restricted his travel outside Karnataka. He recently moved a plea before the High Court to relax this restriction.
Senior Advocate KN Phanindra, appearing for Nagendra, submitted that for the last two years, he has had to make an application before the concerned court to seek permission to travel out of the State.
Additional Solicitor General Aravind Kamath countered that Nagendra should approach the special court for the modification of his bail terms before approaching the High Court.
After considering the rival submissions, the Court eventually agreed to delete the bail condition that prevented Nagendra's travel outside of Karnataka.
However, the judge clarified that Nagendra cannot leave the country without prior permission and would have to cooperate with the investigation.