Lokayukta indicts Yeddyruppa, Reddy brothers in illegal mining

Bangalore, July 27 (PTI) The Lokayukta report on
illegal mining on Wednesday strongly indicted Karnataka Chief
Minister B S Yeddyruappa, Reddy brothers and various others
and recommended their prosecution under Prevention of
Corruption Act and other laws.
In damning evidence against the Chief Minister of the
south Indian state, the Lokayukta headed by former Supreme
Court judge Justice Santosh Hegde found that a mining company
had donated Rs 10 crore to a trust managed by his family
members which also sold a piece of land to a mining company
for Rs 20 crore far above the guidance value of Rs 1.4 crore.
Ater submitting the report running into 25,228 pages
including annexures, Hegde told a press conference that he has
named Chief Minister Yeddyruppa, former Chief Minister and
JDS leader H D Kumaraswamy, Reddy brothers (who are ministers
and mining magnates), their camp follower and another minister
H Sriramulu, Congress MP Anil Lad's wife and over 600
officials in the mining racket that cost the exchequer Rs
16,085 crore between 2006 and 2010.
"Having come to the conclusion that there is as a
matter of fact an offence made under the Prevention of
Corruption Act I have made a recommendation to the Governor to
take further action," Hegde said in respect of the donation
made to the trust run by the Chief Minister's family members.
At another point, he said, "I have made a
recommendation for prosecuting everybody. I have stated this
to the Governor. It is for him to act."
To a question, he shot back,"Action under Prevention
of Corruption Act should be taken. What else?."
The report castigated the BJP government, which is
in power since May 2008, for its failure to check
irregularities and illegalities in mining in the state.
"The enquiry has found large scale involvement of
officials, powerful people both in the Administration as
well as in the ground level," said Hegde whose main report
runs into 943 pages.
Hegde said in the course of investigations they found
that a company dealing in iron ore donated Rs 10 crore to the
Trust run by family members of the Chief Minister.
From the Trust, a mining company purchased an acre of
land for Rs 20 crore far above the guidance value of Rs 1.40
crore, he said.
"This payment has been made to the Trust which has
nothing to do with the donating company which has not been
doing well but borrowed money from another company and donated
this. I find this extremly difficult to understand this
abnormal high price.
"We have come to an incontrovertible conclusion that
this donation and sale consideration has been made for reasons
other than genuine reasons." he added.
Replying to questions, Hegde confirmed that the
report makes a mention of the CM, his family members, Reddy
brothers, Sriramulu and Kumaraswamy and over 600 officials.
In the case of Kumaraswamy, the enquiry found
"misconduct" on his part regarding grant of two mining leases
and action has been recommended under PCA.
Referring to the purchase of one acre of land in
Rachenahalli on Bangalore outskirts for a consideration of Rs
20 crore when its guidance value would not be more than Rs 1.4
crore, he described this as "abnormal payment to a trust which
has nothing to do with a donating company which was not
financially strong".
Hegde said he found it extrememly difficult to accept
that a company which did not have financial resources should
borrow from other companies to make donation.
"Therefore, having come to the conclusion that there is
an offence under the Prevention of Corruption Act is made, I
have made recommendation to the Government to take further
steps (against Chief Minister B S Yeddyurappa) in this regard
because the competent authority for taking action against the
Chief Minister is governor of the state".
He said the Lokayukta has submitted the report to the
Government and a copy of the report with annexures have been
sent to the Governor for "further action" (in regard to the
Chief Minister).
On Reddy brothers, Hegde said contrary to their claim
that they were not doing any mining in Karnataka, "we have
enough documents to prove to the contrary."
He said the illegalities found were of different types
as has been enumerated in different chapters and supported by
documents.
"The offences committed by various people and companies
will be covered under various acts and action will be taken in
accordance with law under IPC, Forest Act, FMRDA and PCA," he
added.
Hegde said the Lokayukta has recommended that since
various illegalities and irregularities were committed the
Government should cancel the mining licenses, compute the
quantity of loss and treat it as "stolen iron ore" and recover
money from people concerned at the market rate.
The Lokayukta enquiry found that there was rampant
illegal mining in Bellary, Chitradurga and Tumkur because of
which local people suffered from various problems.
"Once illegal mining is stopped the Central and the
State government can recover lakhs of crores of rupees as
Excise and VAT," he said, adding over 100 companies were
involved in illegal mining.
Hegde has also recommended to the Government that
security be provided to his team of officers since they could
face possible threats from some quarters.
The enquiry team had a huge task in examining four
lakh records and collating nearly 50 lakh entries in the
effort to produce the report. PTI BH
ASR