Karnataka Chief Minister Siddaramaiah was examining the facts regarding allegations against his cabinet colleague B Nagendra over an illegal money transfer case, deputy CM DK Shivakumar said on Friday.

Home Minister G Parameshwara too, while admitting that the scam has taken place, said the chief minister will decide on whether the Scheduled Tribes Welfare minister should resign.

The ministers' remarks come in the backdrop of demands for Nagendra's resignation or sacking from the cabinet.

The unauthorised transfer of crores of rupees from Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation’s (KMVSTDC) bank account came to light after Accounts Superintendent Chandrashekhar died by suicide on Sunday evening, leaving behind a note detailing the misappropriation of funds.

He has named KMVSTDC Managing Director J G Padmanabh, Accounts Officer Parashuram G Durugannavar and Union Bank of India Chief Manager Suchismita Rawal in the note, while also stating that the minister had issued oral orders for transferring the funds.

"The chief minister and I are examining the facts. Let there be an examination. There is no question of protecting anyone. Let's see," Shivakumar told reporters here.

To a question on BJP giving a week's ultimatum to the government for the minister's resignation and threatening a statewide protest, he said, "Let them do it (protest) now itself. Why wait till then?" Rs 88.62 crore was transferred without any authorisation from the KMVSTDC bank account at the MG Road branch of Union Bank of India here to its other branches, and apparently the money was then moved to the accounts of some software companies. The corporation's bank account had a total of Rs 187 crore.

Parameshwara, while responding to a question based on a report sought about the scam, said the CM will take a decision on Nagendra's resignation. "Let' see, the chief minister will decide." It is true that the scam has taken place, he said, "It needs to be verified whether it has happened without the knowledge of the minister. We need to see who has done it. If it has happened by bringing it to the notice of the minister, then the minister is responsible. There are many instances of such things happening without bringing it to the notice of the minister. It needs to be probed." Protesting and giving an ultimatum is BJP's right as an opposition party, Paramshwara said, adding, "They will do it. But in government we have our own responsibility. We are answerable to the people of the state. Investigation has begun. There is mention about oral orders from the minister in the death note. It is being verified as to which minister. Were orders given? After verifying, action will be taken." To a question regarding the demand for a CBI probe, the home minister said that in scams involving sums of more than Rs 3 crore (in public sector banks), the procedure is to give the case to the central agency.

"We will see what happens in the future. Now CID has begun the investigation. It is going on. What has been said in the death note, where all the money has got transferred, all those things are being probed," he said.

In case the CBI procedurally wants to take over the case as the misappropriated amount is more than Rs 3 crore, Parameshwara said, "On our own we will not do it (refer to CBI). CID will do the investigation... There won't be two probes. If the situation comes, it will be transferred to CBI from CID." Asked whether he will discuss handing over the case to CBI with the CM, he said, "When such a situation comes, it has to be discussed with CM." About the CM taking the matter seriously and warning the minister, he said, "Yes, because Rs 187 crore public money is involved, so it has to be taken seriously. CM has taken it seriously. Yesterday, he had telephoned me to discuss it, but as I was in Shivamogga, he held a meeting and gave serious instructions to officials."

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