M A I N   N E W S

Hisar MLA’s firm in K’taka mining mess
Shubhadeep Choudhury/TNS

Bangalore, August 7
Investigators followed the money trail to zero in on the alleged attempts made by the JSW Group to influence the then Chief Minister BS Yeddyurappa by giving huge illegal gratifications to his kin. The group, which is officially headed by Hisar MLA Savitri Jindal as the chairperson, figures prominently in the Karnataka Lokayukta’s report on illegal iron ore mining in the state. Sadly, it finds mention in the report always for the wrong reason.

The revelation in the report about the alleged illegal gratification cost the CM his job. Interestingly, South West Mining Limited (SWML), the company involved in the scandal, does not find mention on the JSW Group website where all other companies of the group have been mentioned. On the letter pad of the SWML, the address is, “JSW Mining Office, Near Talur Cross, PO Vidyanagar-583275, Toranagallu, Bellary, Karnataka”.

The Lokayukta’s report makes some sensational disclosures about the donation of Rs 10 crore made by the SWML to the Prerana Trust run by Yeddyurappa’s kin and one acre of land, allegedly worth Rs 1.24 crore, purchased from them by the SWML by paying them a hugely exorbitant price of Rs 20 crore.

During March 2010, when two cheques of Rs 5 crore each were given to the Prerana Educational Trust by the SWML, “the balance in the bank account No. 64010486365 of South West Mining Limited was running under overdraft during that period and also in other periods in the range of 3 to 5 crores”. “If we go by the trail of money transaction, it can be construed that Rs 10 crore has been paid by JSW Steel to the Prerana education Trust”, the Lokayukta’s report further noted.

The report also revealed that Rs 20 crore paid by the SWML to Yeddyurappa’s sons Raghavendra (Rs 10 crore), Vijayendra (Rs 5 crore) and son-in-law Sohan Kumar (Rs 5 crore) in August 2010 had also come from JSW Steels. From the nature of transaction, the report said, it looked that it was JSW Steel that was making the donation through SWML. “Similarly, the sale of one acre of land by sons and son-in-law of the Chief Minister in Rachenahalli village to the SWML is shrouded with suspicion,” the report added.

The Lokayukta, however, does not record his inference about why the JSW Steel carried out the above-mentioned financial transactions through this little known company.

On or about the time of the purchase of the land and the donation, three applications for mining leases submitted by the SWML, Vijaynagar Mineral Limited (also belonging to the JSW Group) and JSW Steel and were pending before the Government of Karnataka. “Suitable reply would have been of great advantage to these companies,” the report observes. The JSW Group has rebutted the charges saying the SWML was a profit-making company and added that it gave donation for construction of an auditorium (in the name its founder chairman late OP Jindal) in a Technology and Management Institute run by the Prerana Education Society in Shimoga, Karnataka.

Regarding the land purchased by the SWML from Yeddyurappa’s two sons and son-in-law, the firm said it was bought at market price.