Report on Upper Bhadra irregularities submitted

The investigation was handed over to the Lokayukta police on August 8, 2011 after JD(S) leader Y S V Datta filed a private complaint alleging that B S Yeddyurappa during his tenure as chief minister had favoured the joint venture RNS Infrastructure-Jyothi to execute the project, even though the price quoted by them was on the higher side.

The judge has directed the Lokayukta police to hand over the final report on November 26, after Lokayukta DySP Girish S submitted the status report to the court.

In his complaint, Datta had said that the Karnataka Neeravari Nigam Limited had floated a tender for construction, operation and maintenance of Upper Bhadra Lift Irrigation Scheme Package 2 for lifting of 21.5 tmc of water for irrigation and drinking purposes.The initial amount for the tender quoted in 2003-04 was Rs 550 crore.

The contract was, however, awarded only during 2008-09, when Yeddyurappa was the chief minister. While 16 firms came forward to obtain tender documents, only five were shortlisted for obtaining the tender documents.

Eventually, only two companies, Kirloskar Brothers Limited and the joint venture company RNS Infrastructure-Jyothi Limited took part in the tender process.

‘Arbritary manner’
Datta alleged that Yeddyurappa awarded the contract to RNS-Jyothi on September 30, 2008 in an arbritrary manner as Karnataka Power Transmission Corporation Limited (KPTCL) as well as an expert committee opined that both the bidders were not technically qualified to execute the project.

Further, Datta alleged that Kirloskar had quoted only Rs 1,025 crore for the main offer and also submitted two alternative proposals - one for Rs 1,020 crore and another for Rs 1,006 crore - whereas RNS-Jyothi quoted Rs 1,032 crore. Also, Jyothi Limited was blacklisted by Himachal Pradesh Electricity Supply Company for five years.

A sum of Rs 103.20 crore was paid to RNS-Jyothi by the government, without seeking any reasons for the increased cost, from the originally quoted price of Rs 550 crore.

Datta submitted documents to prove that Murudeshwara Power Corporation Limited (MPCL) and RNS Infrastructure were run by the same management. MPCL made two payments to two companies, Rs 2 crore to Sahyadri Health Care and Diagnostic Private Limited and Rs 11 crore to Dhavalagiri Properties Developers Private Limited.

While Dhavalagiri Properties is owned by Yeddyurappa’s two sons - B Y Vijayendra and B Y Raghavendra - and son-in-law R N Sohan Kumar, Sahyadri Diagnostics lists Raghavendra, Vijayendra and Sagar Health Care and Diagnostics (with MLA Hemachandra Sagar as chairman) as shareholders in the company.