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LATEST NEWS UPDATES | Supreme Court panel in illegal mining seeks probe into Yeddyurappa bribe allegation-Meera Mohanty

Supreme Court panel in illegal mining seeks probe into Yeddyurappa bribe allegation-Meera Mohanty

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published Published on Mar 30, 2012   modified Modified on Mar 30, 2012

A Supreme Court-appointed panel on illegal mining has recommended an investigation into alleged kickbacks paid to companies linked to the family of former Karnataka chief minister BS Yeddyurappa.

The Central Empowered Committee wrote in a report on Wednesday that payments of 6 crore by a mine owner to two companies controlled by the close kin of the former chief minister must be "investigated in public interest".

The Supreme Court's forest bench will decide whether or not to order an investigation.

The recommendation has the potential to scupper attempts by Yeddyurappa to wrest back the chief ministership, which he lost in July last year after being implicated by the state's anti-corruption ombudsman probing illegal mining in the state.

The Bharatiya Janata Party, which formed its first government in south India in Karnataka, has been embarrassed by a series of corruption scandals. Besides leaving Karnataka in a state of almost permanent political dysfunction, they have also hampered the BJP's attempts to corner the United Progressive Alliance government at the Centre on the issue of corruption.

G Janardhana Reddy, a former tourism minister and a mining baron from iron-ore rich Bellary, is in jail while being investigated for his involvement in illegal mining. Katta Subramanya Naidu and Krishnaiah Setty, who were both ministers, have been incarcerated in connection with land scams.

Yeddyurappa spent three weeks in jail last year after he was arrested in connection with a Lokayukta probe into land denotification to favour his kin. Earlier this month, the Karnataka High Court said the Lokayukta was wrong in implicating him for illegal mining, prompting the former CM to launch a campaign to dislodge Sadananda Gowda and return to the top job in the state.

The allegations against Yeddyurappa's kin were made by Samaja Parivartana Samudaya, an NGO which has been waging a court battle against illegal mining in the state. It has alleged that mine owner Praveen Chandra may have got his iron ore and manganese leases by paying 2.5 crore to Bhagat Homes and 3.5 crore to Dhavalgiri Property Developers in 2009, companies owned by Yeddyurappa's sons and his son-in-law.

Yeddyurappa was the CM at that time and also held the mines portfolio. His sons Vijayendra and Raghavendra and son-in-law Sohan Kumar own 25% each in Dhavalgiri Property. 

Raghavendra, who represents Shimoga in the Lok Sabha, said the companies 'borrowed' Rs 6 crore from Chandra, who is from the same constituency. Half the amount had already been returned, he claimed. 

"There is no illegal activity that has taken place. Chandra had applied for a mining lease in 2004, and it was first recommended in 2006 by the HD Kumaraswamy government," he said. 

According to the Central Empowered Committee, Karnataka recommended Chandra's application to the Centre in September 2009. It then granted Chandra a 20-year mining lease over 132.30 hectares in Chitradurga district in October 2010. 

The panel decided in its report last month that there was no illegality in the allotments. Its latest report is based on representations from dozens of organisations, including the Samaja Parivartana Samudaya.

The Economic Times, 30 March, 2012, http://economictimes.indiatimes.com/news/politics/nation/supreme-court-panel-in-illegal-mining-seeks-probe-into-yeddyurappa-bribe-allegation/articleshow/12461502.cm


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