BENGALURU: The Special Court on Saturday granted bail to Channagiri BJP MLA K Madal Virupakshappa in a corruption case registered by the Lokayukta police. While granting bail, the court noted that there has been no breakthrough in the case on the source of income of Rs 6.10 crore seized from the house situated at Sanjay Nagar in Bengaluru and no explanation has been given by MV Mallikarjuna, director of Kanakagiri Mallikarjuna Steels and Stones, to establish the source of the amount.
“It is for the investigating officer to investigate the source of money. It is pertinent to note that Virupakshappa was not arrested while receiving the bribe and he was not trapped but he was arrested pursuant to the rejection of anticipatory bail by the high court on March 27. He was handed over to police custody for five days the very next day till April 1 and then he was remanded to judicial custody.
Another important aspect is that Madal is aged 74 and the medical report shows that he is having a heart disease,” said Judge B Jayantha Kumar. The court said the allegation of the prosecution is that MV Prashanth Kumar, the accused No.2, had received a bribe of Rs 40 lakh at the instruction of his father Madal Virupakshappa, the accused No 1 and former chairman of Karnataka Soaps and Detergents Limited.
The prosecution also produced the statement of Dr Mahesh, managing director of KS&DL, which prima facia shows the involvement of Madal and interference of his son in the tender process. In spite of that, keeping Madal in the custody for a long period would serve no purpose of the prosecution to investigate the source of Rs. 6.10 crore, the court said, passing the orders to release him on bail, imposing conditions.
Observing that the bail application cannot be rejected on the only ground of allegations of the Lokayukta police that Madal has not cooperated during the investigation, the court said the IO has recorded the statements of Assistant General Manager and staff of KS&DL. But so far, there is no breakthrough on the source of Rs 6.10 crore that was allegedly seized from the bedroom of Madal at his house in Sanjay Nagar.
The counsel of the accused argued they the house where the money was seized does not belongs to Madal. But the court, going through the certificate of incorporation and contents of the sale deeds, said the properties were purchased by Kanakagiri Stones, represented by MV Mallikarjuna -- son of Madal Virupakshappa.