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CBI files chargesheet against BSY, ex-JSW Steel official

The agency accuses Yeddyurappa of causing Rs 890-crore loss to exchequer

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BS Reporter Bangalore

The Central Bureau of Investigation (CBI) on Tuesday filed a chargesheet against former Karnataka chief minister B S Yeddyurappa, his two sons, B Y Raghavendra and B Y Vijayendra, son-in-law R N Sohan Kumar, a former chief executive and senior vice-president of JSW Steel and eight others in a land denotification case.

Officials filed the chargesheet in the court of a special judge for CBI cases. The investigation agency also filed a chargesheet against Krishnaiah Shetty, a former minister in Yeddyurappa’s Bharatiya Janata Party government.

Raghavendra is a Lok Sabha member from the Shimoga constituency.

CBI had registered a criminal case against Yeddyurappa and others, following the directions of the Supreme Court on May 11, and had conducted raids on offices and residences of the former chief minister. A Lokayukta report on illegal mining had indicted Yeddyurappa earlier for receiving alleged kickbacks in the land denotification case.

 

“During investigations, it was revealed that the accused allegedly hatched a criminal conspiracy during 2006-10. Subsequently, two sons and a son-in-law of the then chief minister purchased land for Rs 40 lakh, which was notified for acquisition by the Karnataka government. The said land was de-notified from acquisition by Yeddyurappa by allegedly abusing his official position in violation of various government rules,” a CBI statement said. “Further, the same land was sold at an exorbitant rate of Rs 20 crore to a Bellary-based private group, though the guidance value of the land was Rs 1.5 crore,” it added.

The Bellary-based JSW Steel had owed Rs 890 crore to the state government. Yeddyurappa is accused of not insisting on the recovery of this Rs 890 crore from the company. CBI says the Rs 20 crore Yeddyurappa’s kin received for the land deal was a quid pro quo for the government not recovering the dues.

“Investigation has revealed that the said amount of Rs 20 crore was allegedly a cover-up to the illegal gratification received from the Bellary-based private company as a quid-pro-quo for not insisting on the recovery of Rs 890 crore from the same company,” CBI said, adding: “Further, it is revealed that the private company has allegedly paid through its sister companies Rs 20 crore as a donation to a trust run by the kin of Yeddyurappa.”

In a statement, JSW Steel said: “As the copy of the chargesheet has not been served on any of the officers of the company, it is premature to offer comments. The conclusions drawn by the said authorities leading to the chargesheet are without basis. The company always abides by the law of the country and would present its case before the court. The company has full faith in the judiciary that justice will be done.”

Yeddyurappa resigned as the chief minister on July 31, 2011, after the Lokatyuka report indicted him, following which a spate of corruption and land denotification cases have been filed against him.

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First Published: Oct 17 2012 | 12:00 AM IST

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