Hegde vindicated, nod for Ayukta report

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With the Supreme Court ordering a CBI probe against former Chief Minister B.S.Yeddyurappa, one more chapter of the state Lokayukta’s report has been accepted by the highest court. Earlier, CEC had considered Chapter 7, pertaining to Associated Mining Company, while recommending the apex court order a CBI inquiry against former minister Janardhana Reddy.

When the Lokayukta report (part-2) was submitted in July 2011, Chapter 22 created an uproar and Mr Yeddyurappa stepped down as the Chief Minister of the state. Chapter 22 in IFS officer U. V. Singh’s report narrated the transactions between South West Mining Company and companies owned by Mr Yeddyurappa’s kin.

The report had stated that all associated companies of the Jindal group (six firms) made their application for grant of mining lease in 2007. However it was not pursued till March-July 2010. By then, the Union Government had sought feedback on certain issues on the representation and the State Government was to reply to the same.

At this point, Rs10 crore was paid to Prerana Education Trust, on March 17 and March 18, 2010. The report also stated that the purchase of land at Rachenahalli for Rs 20 crore required further investigation by a competent investigating agency.

‘The payment of such huge amounts creates strong suspicion as to whether such payment is made for getting favour, for submitting a favourable reply to Central Government by the State Government for processing the proposals to grant of iron ore mining leases in favour of Jindal group companies. Such possibility cannot be ruled out,’ Justice Santosh Hegde’s report stated.

The report also recommended criminal proceedings against Mr Yeddyurappa and other persons who were involved in these transactions.

A month ago, the contents of Chapter 7 got the acceptance of the Supreme Court when the CEC recommended a CBI probe against Associated Mining Company (AMC). The report stated that AMC was granted a lease for 30 years in 1966 for mining in 16.9 hectares of land in Venkatagiri village, Sandur taluk in Bellary district. After the expiry of the lease in 1996, no effort was made to renew the lease for four years.

When the owner of the company applied for renewal of the lease, the then minister for mines and geology, Mr Muniyappa, overruled the noting of the secretary, mines, and renewed the lease in 2003 for 10 years, from 2000 to 2010, leaving the period between 1996 and 2000 uncovered. This was in stark violation of the MMRD Act.

AMC was by then taken over by G. Lakshmi Aruna and G. Janaradhana Reddy. AMC’s SBI bank account in Bellary witnessed Rs 269.73 crore debit and Rs 270.60 crore credit from 2009 to February 2011. These transactions allegedly showed linkages between AMC and other firms.