The Karnataka High Court on Thursday ordered to issue notice to Ballari Rural MLA and former Minister B. Nagendra on a petition filed by the Central Bureau of Investigation (CBI). The CBI seeks cancellation of the anticipatory bail granted to Mr. Nagendra in a ₹89 crore fraud case linked to the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Ltd. Justice S. Sunil Dutt Yadav heard the CBI’s petition and adjourned further hearing to January 29. He also asked the CBI to serve notice on Mr. Nagendra. Earlier, on January 14, the Special Court for Criminal Cases against Former and Present MPs and MLAs had granted anticipatory bail to Mr. Nagendra. The court noted that the CBI did not provide evidence showing his involvement in the misappropriation of funds or a need for custodial interrogation, especially since Mr. Nagendra had responded to several CBI notices. CBI’s advocate, P. Prasanna Kumar, told the court that some funds from the Valmiki corporation’s bank account were transferred to two women in Mumbai. These women used the money to buy ornaments. Mr. Nagendra, then Minister for Scheduled Tribes Welfare, Youth Empowerment, and Sports, met these women overnight in Mumbai. The CBI said that Mr. Nagendra was not cooperating with the investigation. They argued that granting him anticipatory bail affected the probe, which is monitored by the High Court. The CBI must also submit regular status reports on the investigation. The High Court was informed that the Special Court erred in granting bail despite CBI submitting investigation materials. The case started with a complaint from Union Bank of India regarding fraud linked to its staff. In July 2025, the High Court expanded the probe to include the Karnataka German Technical Training Institute in Bengaluru and a diversion of ₹2.17 crore from the Valmiki corporation through an account with Bank of Baroda.