Senior BJP leader B Sriramulu accused Karnataka's Maharshi Valmiki Scheduled Tribes Development Corporation of misappropriating funds through honey-trapping government and bank officials. The money was allegedly used to purchase luxury cars including a Lamborghini. He alleged that the funds were diverted through 'hawala' channels. Former Minister Narasimha Nayak criticised the state government's alleged involvement in the scam, with the BJP demanding the arrest of Congress MLA B Nagendra over the scandal.