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Under attack from Oppn, Karnataka CM reveals assets
Shubhadeep Choudhury
Tribune News Service

Bangalore, February 6
Facing the Opposition onslaught over allegations of corruption and nepotism, the beleaguered Karnataka Chief Minister, BS Yeddyurappa, today declared his assets.

Yeddyurappa also declared that neither he as the Chief Minister nor any of his family members have any accounts in Swiss banks or in any other country’s tax havens.

A four-page letter - written by Yeddyurappa to BJP national president Nitin Gadkari, with a copy to Dharmendra Pradhan, BJP national general secretary and party in charge for supervising the Karnataka affairs - containing a statement about his assets was released to the media here.

Yeddyurappa declared four agricultural properties (total 18 acres) in Shikaripura in Shimoga district. These include an over five-acre plot he has inherited from his deceased wife Mythradevi. He also declared four non-agricultural properties consisting of two residential buildings in Shikaripura, including one inherited from his wife, a house in a posh Bangalore locality and a 9.12-acre industrial plot.

The industrial plot, when it was originally purchased in January 2007, was an agricultural land. It was converted as industrial land in December 2008, seven months after Yeddyurappa became the Chief Minister.

Yeddyurappa declared having purchased shares in four business houses, including 70 shares in Khaitan. He reported gold and diamond jewellery weighing more than 2.5 kg and silverware of more than 75 kg. The CM declared cash deposits in various banks amounting to more than Rs 34 lakh and reported household goods, furniture and electronic items worth Rs 1.45 lakh. Yeddyurappa’s detractors have accused him of enriching his family members, including his two sons and son-in-law, by giving them de-notified government acquired land. “Hope you may find the above information as per the order required”, the Chief Minister wrote in the letter to Gadkari.

It’s raining money for firms of kin

Two companies — Davalagiri Property Developers Private Ltd (DPDPL) and Bhagath Homes Private Limited (BHPL) — belonging to Karnataka Chief Minister Yeddyurappa’s family members are attracting attention for their rather curious functioning.

The DPDPL, in which Yeddyurappa’s sons Vijayendra and Raghavendra and son-in-law Sohan Kumar hold 75 per cent share, came into being in March 2006, soon after Yeddyurappa became the Deputy Chief Minister. The BHPL, owned by Yeddyurappa’s daughters-in-law Thejaswani and Prema, son-in-law Sohan Kumar and close relative Bhramara, was set up in March 2008, shortly before Yeddyurappa rook over as the Chief Minister of the first BJP government in Karnataka.

The main objective of both companies is the development of properties and to earn income out of it. However, none of the two companies has started any major projects so far. The assets purchased are treated as fixed assets. By treating the purchased assets as fixed assets, it is clear that the companies have no intention of trading them.

However, businessmen, rather inexplicably, are found putting money in the two companies. The DPDPL received Rs 2 crore from Thrishul Developers in financial year 2007-08. During the next financial year (2008-09), Thrishul Developers made a payment of Rs 75 lakh to the DPDPL. The company has also received advances from Sr Balaji Krupa Enterprises (proprietor Krishnaiah Setty) and one Praveen Chandra.

Balaji Krupa Developers paid an advance of Rs 2 crore to the DPDPL and Rs 3.5 crore in favour of Bhagath Homes Private Limited. Praveen Chandra paid an advance of Rs 3.5 crore to the DPDPL and Rs 2.5 crore in favour of Bhagath Homes Private Limited.

In the normal course of business, any advance received by a company is adjusted towards the value of services to be rendered or returned, if the services are not rendered. Both companies, being private limited companies, cannot accept deposit under the Companies Act, 1956. The amounts received by the companies from the above-mentioned entities have been treated as advance received. However, these amounts received as advance are not commensurate with any of the projects on hand or property development.

According to Srirajin Basha, who has filed complaints against Chief Minister Yeddyurappa and his family members in the city civil and sessions court here for corruption, misuse of power and various other clauses of IPC, the advances are, “nothing but illegal gratification received by Yeddyurappa for showing illegal official favours”.

Listing the favours, the complainant claims that about 2 acres of lands acquired by Bangalore Development Authority (BDA) for extension of HBR III stage residential layout was de-notified by the CM for the Thrishul Developers for constructing a five-star hotel.

Although the final notification had been issued with regard to land acquisitions, the properties were purchased by Thrishul Developers under three registered sale deeds in October 2004.

Thrishul Developers then filed a writ in the Karnataka High Court challenging the acquisition proceedings. The petition was dismissed by the court on June 3, 2008, soon after Yeddyurappa took over as the Chief Minister in May 2008.

On June 23, 2008, Prakash Shetty, partner of Thrishul Developers wrote an application to Yeddyurappa to de-notify the above chunks of land. The file was secured by Yeddyurappa without placing the matter before the de-notification committee constituted by the government.

Later, Yeddyurappa, as the chairman of the high-level committee constituted under the Karnataka Industries Facilitation Act, 2002, cleared the project of Thrishul Developers to establish a five-star hotel and service apartments on those chunks of land.

The CM allegedly helped Balaji Krupa Developers to obtain “change of land use” permission for the construction of residential complex for Karnataka Telecom Department Employees Coop Society Limited.

Praveen Chandra, who paid an “advance” of Rs 3.5 crore to DPDPL and Rs 2.5 crore to Bhagath Homes Private Limited, got two industrial plots from the Karnataka Industrial Area Development Board and was granted mining lease for iron ore and manganese ore in 132.3 hectares in Chithradurga district.