CM sons' trust received Rs 40 cr bribe: Opposition

The opposition Congress and JD(S) today alleged that an educational trust owned by chief minister B S Yeddyurappa has received “kickbacks” from a Jindal group company in return for certain favours and demanded a CBI probe into the matter.

The opposition parties staged dharna in the Karnataka Legislative Assembly over the issue even as the government rejected their demand. The proceedings of the Budget session were stalled over this row.

Leader of the Opposition Siddaramaiah of Congress demanded the resignation of the Chief Minister. The opposition members gathered at the well of the house and staged dharna.

S Suresh Kumar, minister for law and parliamentary affairs said that the government would not order any inquiry from the Central Bureau of Investigation (CBI).

Speaker of the house K G Bopaiah called the meeting of the opposition leaders and Ministers in his chamber and convinced the members to follow some order in the house. When the house assembled Congress and JD(S) MLAs continued their dharna. Subsequently, the speaker adjourned the house for tomorrow.

Talking to reporters outside the assembly hall, Siddaramaiah alleged that funds given by donors to Prerana Educational and Social Trust, which the sons of Yeddyurappa, B Y Raghavendra and B Y Vijayendra manage, does not amount to donation. “It is nothing but “kickbacks” in return for some favours from the government. He said a Jindal group company had donated funds to Yeddyurappa’s educational trust in return for not recovering certain dues from its joint venture company with Mysore Minerals Ltd (MML).

According to Siddaramaiah, the Jindals had entered into a JV agreement with MML and formed a company, Vijayanagar Minerals Private Limited (VMPL) to carry out iron ore mining in the state. As per the terms of the JV company, Jindals had to pay premium on the iron ore extracted to MML as fixed by the Central government.

However, the company has not paid the royalty amount to MML, which is a government company, which runs into over Rs 500 crore till date. In return for not recovering this money, the Jindals have paid Rs 40 crore “kickbacks” to Yeddyurappa’s educational trust, he alleged.

The issue had rocked the Assembly yesterday also. The opposition alleged that the trust had received Rs 27.18 crore donations during 2008-09 and 2009-10, with Adarsh Developers and Jindal (JSW Mining company) being two of the major donors.

Siddaramaiah said Adarsh Developers was allowed to encroach government land. “This is nothing but a bribe and illegal gratification,” he said.