Karnataka Lokayukta justice Santosh Hegde has recommended action against chief minister BS Yeddyurappa for offences under the Prevention of Corruption Act in his report on illegal mining submitted to the governor on Wednesday.
The 25,228-page report has gone into illegalities in the mining of iron-ore, its transport and export which has caused an estimated loss of R16,085 crore to state exchequer between 2006 and 2010.
The indictment comes amid demands for Yeddyurappa?s resignation from the opposition parties and from within the BJP. Some quarters within the BJP feel that his continuance as CM would blunt its tirade against UPA?s corruption scandals. Yeddyurappa left for New Delhi on Wednesday evening to meet BJP leaders after the Lokayukata submitted the report.
Yeddyurappa?s indictment follows the donation of a sum of R10 crore by South West Mining Company to an education trust run by his family members, Hegde told media persons on Wednesday.
He has also mentioned the sale of a one acre plot near Bangalore, owned by Yeddyurappa’s sons to the same mining company for R20 crore when the government’s guidance value was around R1.2 crore per acre. According to Hegde, the mining company was not financially strong and had borrowed the R10 crore from other companies. ?These payments either as donations of sale considerations have been made for reasons other than genuine,? Hegde said. ?Therefore, having come to the conclusion that there is an offence under the Prevention of Corruption Act, I have made recommendations to the governor to take further steps in that regard.?
Hegde’s report also names former chief minister HD Kumaraswamy in connection with approving two mining leases and includes the names of tourism minister Janardhana Reddy, revenue minister Karunakara Reddy, health minister B Sreeramulu and housing minister V Somanna, besides Congress MP Anil Lad and MLA Nagendra, besides 787 officials.
Hegde said they had enough documents to prove that the Reddy brothers were involved in mining in Karnataka though their company was located in Andhra Pradesh. Over 100 mining companies have been involved in different illegal activities, he said, adding that cancellation of leases was among the recommendations.
?I have one hope. The Supreme Court is monitoring the mining activities in Karnataka and will look into this report,? he said. He reminded that the Karnataka government had not taken any action on his earlier report submitted in December 2008. ?Like in the previous report, this report has also found that there is large-scale involvement of officials and powerful people both in the administration and at the ground level,? he noted. Hegde’s earlier report, which held former chief minister Dharam Singh and several officials accountable for decisions that caused loss to the exchequer, was ordered by the HD Kumaraswamy government in 2007. The first report spanned the period between 2000 and 2006. The latest report covers the period from 2008 to 2010. The investigation intensified after the theft of over 5 lakh tonnes of illegally mined ore seized at the state’s Bellikeri port near Karwar in March 2010. ?The present investigation had to examine 4 lakh reports and collate nearly 50 lakh entries,? he said, adding that his team of officials faced numerous threats as they had ?stepped on the toes of many powerful people.?