After the Valmiki Corporation scam exposé, the Siddaramaiah government is facing another embarrassment after a video was released of the Bhovi Development Corporation Board (BDCB) chairman S Ravikumar's conversation with a broker on the percentage of bribe to be given to the minister by the beneficiaries of a land purchase scheme.
The video of the sting operation on Ravikumar was released to the media by Dr Venkatesh Mourya, member of the BJP SC Morcha's national executive committee.
"The ruling Congress spent the Valmiki corporation funds for Telangana Assembly elections, and B. Nagendra, then minister, had to quit the cabinet. Now, is KPCC chief DK Shivakumar trying to raise funds through Ravikumar for the Bihar polls?" asked Mourya, demanding that Ravikumar, who belongs to the (Bhovi) community, be dismissed from the post and arrested.
The opposition parties have demanded a Lokayukta probe into the case, while accusing the Siddaramaiah government of committing injustice to the Dalit communities.
BJP leader and LOP in Council, Chalavadi Narayanaswamy, said the corporations and boards set up in the name of uplifting the marginalised communities had become dens of commission gangs. "The Congress is helping to fill the pockets of the corrupt with people’s money in the name of empowerment. The government must immediately dismiss this chairman and file a strict criminal case. Else, it will be proven beyond doubt that the government is a direct partner in this commission racket," alleged Narayanaswamy.
Union minister and JDS leader H D Kumaraswamy said the Bhovi Corporation had joined the Valmiki Corporation as a corruption hotspot, where the Chairman himself played the kingpin in commission rackets.
"The development boards meant for the empowerment of small communities have turned into ATMs for the corrupt. Instead of uplifting lives, they’re busy benefiting the scamsters. A ₹5 lakh cut for a ₹25 lakh loan? What an achievement of the Congress government," posted Kumaraswamy on X.
LOP in Assembly R Ashok stated that the Congress party was "anti-Dalit" and demanded that Siddaramaiah step down as the chief minister.
"The Congress government diverted ₹187 crore meant for the welfare of Scheduled Tribes under the Valmiki Development Corporation to fund the Telangana and the Lok Sabha elections. Every year, around ₹15,000 crore from the SC/ST (SCSP/TSP) welfare funds are diverted to guarantee schemes and other programmes, depriving the dalit communities of their rightful share. No, the Bhovi Corporation chairman is demanding commissions from beneficiaries under the land ownership scheme, to release this grant," said Ashok, demanding the CM to resign on moral grounds.
What was the alleged corruption about?
The Bhovi corporation was set up in 2016 for the comprehensive development of the (SC) community, which, as per the 2011 Census, had a population of 11 lakh. The community engaged in stone breaking, pond maintenance, building construction, earthwork, plastering, and other manual labour is known as Od, Odde, Vaddar, Wadder, Voddar, Kallu Voddar Bovi(non-besta) in Karnataka.
The alleged corruption is related to the land purchase scheme, which is meant to provide land to landless women agricultural labourers belonging to the Bhovi community after purchasing land from non-SC/ST land owners. The beneficiaries are eligible for two acres of dry land or one acre of wet land, or half an acre of garden land under the scheme, where 50% will be a subsidy and 50% will be a term loan. The unit cost is ₹25 lakh in Bengaluru Urban, Bengaluru Rural, Chikballapur, Tumkur, Ramnagar, and Kolar districts.
The corporation also runs other schemes: Ganga Kalyana, microcredit (Prerana), and self employment schemes. In the state Budget with an outlay of ₹4,09,549 crore for 2025-26, Chief Minister Siddaramaiah, also the finance minister, has provided ₹488 crore to the corporations coming under the social welfare department.
Mourya alleged that only ₹13 crore out of the ₹65 crore that was promised to the community was released.
Other corruption cases
This is not the first time the corporation has been under the scanner. In April this year, the Enforcement Directorate arrested Leelavathy, managing director, under the Prevention of Money Laundering Act after investigations revealed that she had misappropriated funds by sanctioning loans to more than 750 fake beneficiaries.
In May 2025, the ED attached immovable assets worth ₹26 crore linked to the former BDCB officials - Leelavathy and BK Nagarajappa, former general manager, and the Criminal Investigation Department (CID), which was done simultaneously. probing the case arrested Nagarajappa R Leelavathy, and her sister R Mangala, over a ₹97-crore fund transfer scam.
Interestingly, there are 24 caste-based (backward classes) corporations and three SC corporations: Bhovi, Dr BR Ambedkar, and Adijambava, created by subsequent governments to provide financial assistance and loans for self-entrepreneurship or studies. However, the corporations are cash strapped owing to the five guarantees schemes (which cost ₹58,000 crore) and the huge allocation of ₹42,017 crore to the SC and Tribal sub plans. The state government has diverted ₹11,896 crore to the five guarantees.
While the political parties have used the caste-based corporations as a tool for appeasement, a PIL has been filed in the Karnataka High Court challenging the constitutional validity of caste-based development corporations (for Lingayats, Brahmins, Christians, Marathas, along with Backward classes) as violating secularism. The petition also alleged that using public money for select castes violated the constitutional principles of equality. However, the state government defended its decision, claiming they are valid welfare tools under Article 162 to help empower the marginalized groups.
While the Modi government has backed the 'Sabka saath sabka vikas' (development for all) model nationally, the BJP in Karnataka is also guilty of creating at least 11 caste-based corporations for political reasons.