This chapter that damns Yeddyurappa and his family members for taking illegal gratification sees Justice Hegde ordering a stinging recommendation to Governor H R Bhardwaj to prosecute him under the Prevention of Corruption Act.
The eleven-page chapter outlines the manner in which influential mining companies gave donations to Prerana Education Trust owned by Yeddyurappa’s sons B Y Raghavendra, B Y Vijayendra, and son-in-law Sohan Kumar.
“The money transactions between the mining companies and Prerana Trust are sham transactions. The donation and the excess payment made to the family members of the Chief Minister are to get favourable reply from the State government to the Centre. This is nothing but illegal gratification to show an official favour, which is an offence under the Prevention of Corruption Act.”
It has been established that JSW Steel paid Rs 10 crore to Prerana Trust. But the money was transferred through South West Mining Company Ltd (SWMCL). SWMCL presented two cheques of Rs five lakh each to Prerana Education Trust on March 17, 2010 and March 18, 2010. Investigations revealed that certain abnormal transactions of money were made.
An amount of Rs 11.9 crore was credited to SWMCL on February 26, 2010. The amount came from JSW Steel Ltd. There was no trade between the two during this period.
In the subsequent period (between August 14, 2010 and September 9, 2010), Rs 20 crore was deposited in favour of Raghavendra, Vijayendra, and Sohan Kumar by the company.
This was for purchase of one acre land at Manyata Tech Park, Rachenahalli, Bangalore. The sale agreement was signed between Raghavendra, Vijayendra, Sohan Kumar and R D Nataraj of SWMCL, Vidyanagar, Torangal. The amount came to SWMCL through circuitous route from Jindal Praxair Oxygen Company and JSW Steel. SWMCL later deposited this amount to Prerana Trust. The guidance value of the land is however Rs 1.24 crore.
The report states that payments were made by JSW, SWMCL, and VMPL for availing favours from the State government for processing proposals to grant iron ore mining leases.