The CBI today filed its chargesheet against former Karnataka chief minister B S Yeddyurappafor allegedly granting undue favours to steel firms in returnfor donations to a charitable trust run by his kin and therebycausing a loss of Rs 890 crore to the exchequer.
In its charge sheet filed before special CBI court, theagency named as accused Yeddyurappa, his sons B Y Vijayendraand B Y Raghavendra, his son-in-law R N Sohan Kumar, JSWSteels represented by Sajjan Jindal, its CEO Vinod Nowal andSenior Vice President Vikash Sharma among others.
CBI sources said the accused have been booked under IPCsections 120-B (criminal conspiracy) read with 109 (Abetment),420 (cheating), 468 (forgery), 471 (forging of documents)besides relevant sections of Prevention of Corruption Act andSection 9 read with Section 4 of Karnataka Land (Restrictionon) Transfer Act related to illegal mining.
Describing the conspiracy, CBI alleged that during2006-10, the then Karnataka chief minister Yeddyurappa's kinVijayendra, Raghavendra and Sohan Kumar, in violation of laws,purchased a land in Bangalore for Rs 40 lakh which wasnotified for acquisition by the state government.
The land was denotified from acquisition by Yeddyurappain an alleged abuse of his official position in violation ofvarious rules, the CBI claimed.
The agency alleged that the land was later sold atexorbitant rates of Rs 20 crore to JSW Steel Ltd group ofcompanies even though the guidance value of the land was Rs1.5 crore, CBI sources said here.
The agency alleged that the inflated price was paid asbribe by the steel group as quid-pro-quo for not insisting forthe recovery of Rs 890 crore from it which is the loss causedto state public sector undertaking Mysore Minerals Limited.
The agency, which registered the case in May on orders ofthe Suprme Court, also named as accused South West MiningLimited represented by Anil Sood, Real Technical SolutionPrivate Limited represented by Srikant Shetty, Jai BharatTechnical Services Private Limited represented by MuralidharDash and Industrial Techno Manpower Supply and ServicesPrivate Limited represented by Vivekananda Kulkarni.
The Prerana Educational and Social Trust, represented byB Y Raghavendra, who is also its managing trustee, andKrishnaiah Shetty were also named as accused by the agency.
The CBI alleged that JSW Steels paid through South WestMining Limited, its alleged sister concern, a donation of Rs20 crore to Prerana Educational and Social Trust, which inturn transferred Rs 6 crore to another trust run by him.
"It was revealed that the said Bellary-based company hasallegedly paid through its sister companies, a sum of Rs 20crore as a donation to the Trust run by the kin of the thenChief Minister," CBI spokesperson said in a statement.
Acting on the report of Central Empowered Committee(CEC), the Supreme Court had ordered the CBI to carry outprobe against Yeddyurappa for alleged undue favours granted tofirms involved in illegal mining in Bellary in return fordonations to a charitable trust run by his kin.
JSW Steel in a statement said as the copy of the chargesheet has not been served on any of the officers of thecompany, it is premature to offer comments.
"However, during the investigation stage the company hascooperated with the investigating authorities and providedall the details in connection with the alleged transactions.
The conclusions drawn by the said authorities leading tocharge sheet are without basis," the spokesperson said.
It said the company always abides by law of the countryand would present its case before the court. The company addedit has full faith in the judiciary that justice will be done.