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FIR alleging corruption in grant of mining leases quashed: Yeddyurappa

Former chief minister B S Yeddyurappa on Monday told the Central Empowered Committee (CEC) that there was no need for a CBI investigation against him as the Karnataka High Court had already quashed an FIR based on the Lokayukta report accusing him of corruption in grant of mining leases to private companies.

In an affidavit filed before the Supreme Court-appointed panel, he said as no FIR existed now after its quashing by the High Court, the question of transfering of cases from Lokayukta to CBI did not arise. 

A division bench of the High Court, while quashing the FIR, had stated that the investigating agency did not produce documents to substantiate its charges that Yeddyurappa favoured mining companies, the affidavit said.

Dismissing the allegations levelled by Samaja Parivarthana Samudaya, a Dharwad-based NGO, in its petition before the CEC that mining companies deposited money in the trust owned by Yeddyurappa’s family members as a quid pro quo for grant of mining leases, Yeddyurappa said the demand for CBI investigation was politically motivated.

On the charges that Prerana Education Trust, owned by the family members of Yeddyurappa and relatives, had received Rs 30 crore (Rs 10 crore as donation and Rs 20 crore for land sold at a price far above the market value) from South West Mining Limited (SWML), the former CM said that it was a public trust and money came in as donations. Moreover, his sons were only its members.

Apart from this, he (Yeddyurappa) had no say in the affairs of the organisation at all and he did not sanction mining leases to SWML when he was the chief minister. 

Funds transfer charge

On the grant of mining lease to Praveen Chandra in Chitradurga district, Yeddyurappa said the matter was pending before the court at Bangalore, which had issued summons to the parties concerned. When the court is hearing the case, demand for a CBI probe was untenable, he said in his affidavit.

The NGO alleged that Praveen Chandra, the lessee, had made two payments - one of Rs 2.5 crore to Bhagat Homes and another of Rs 3.5 crore to Dhavalagiri Property Developers - which are shown in the balance sheets of the two companies. The directors of these companies are close family members/relatives of Yeddyurappa. The transfer of money to the two companies and grant of mining leases should be probed, the NGO demanded.