JSW Steel cries foul over CBI charge sheet

Probe found the company had given Rs 20 crore as bribe to the education trust run by the kin of former chief minister B S Yeddyurappa

Two days after the Central Bureau of Investigation (CBI) filed the charge sheet in a graft case related to the multi-crore mining scam, JSW Steel Limited on Thursday denied entering into criminal conspiracy with other accused causing Rs 890 crore loss to the state exchequer.

In a statement to the media late Thursday, the beleaguered company said, “No basis for such a conspiracy and accusing the company of causing the purported loss to the state government.”

The CBI investigation found the company and its subsidiaries (South West Mining Limited) had given Rs 20 crore as bribe to the education trust run by the kin of former chief minister B S Yeddyurappa as a ‘quid-pro-quo’ for not insisting recovery of Rs 890 crore from Vijayanagar Minerals Ltd, a joint venture between JSW and state-run Mysore Minerals Ltd (MML).

The criminal conspiracy also involved Yeddyurappa’s kin buying government land near Bangalore for Rs 40 lakh and selling it to JSW and its subsidiary for Rs 20 crore, when the guidance value was Rs 1.5 crore.

The company, however, issued the statement without being served the charge sheet by the CBI special court.

The CBI registered a criminal case against Yeddyurappa and the other accused on the directive of the Supreme Court on May 11, 2012 under the various sections of the Prevention of Corruption Act, 1988 and the Karnataka Land (restriction on) Transfer Act.

The other accused are JSW Steels vice-chairman Sajjan Jindal, its chief executive Vinod Nowal, senior vice-president Vikash Sharma, Anil Sood of South West Mining Company (a joint subsidiary of JSW), Srikant Shetty of Real Technical Solution Ltd, Muralidhar Dash of Jai Bharat Technical Services Ltd and Vivekananda Kulkarni of Industrial Techno Manpower Supply & Services Ltd.

On October 16, 2012, the CBI filed the charge sheet in the court of special judge for CBI cases against Yeddyurappa, his two sons B Y Raghavendra, B Y Vijayendra, son-in-law R N Sohan Kumar, their Shimoga-based Prerna Education Trust, former state Muzrai minister Krishnaiah Shetty and six mining firms, including the Bellary-based JSW Steel Ltd.

The company also assured its stakeholders that the CBI charge sheet was without basis, as MML did not seek the loss amount from it. On the contrary, the company has filed a lawsuit against MML for recovery of principal claim of Rs 216 crore illegally recovered from the company.

“Though company is aggrieved, yet, its image is being maligned as government of Karnataka is failing to place the facts before the public that no favours were extended to the company. The company would present its defense before the competent court,” the statement added.