Leader of the Opposition in the Karnataka Legislative Assembly Jagadish Shettar said that Rs 5800 crore was being misappropriated by the ruling Congress, in the name of sand imports from Malaysia.
Speaking at a press meet here on Tuesday, Shettar said MSIL was buying 36 lakh tons of sand each year and the agreement with the exporters is to import 180 lakh tons in three years. The tender had been called in May he revealed.
"Purchases are being made in the name of 'Poseidon FZE', a company that does not exist. This company does not figure in any of the documentation pertaining to the time when the tender was called," Shettar added.
Mysore Sales International Limited (MSIL)
"MSIL Managing Director Prakash and General Manager Mahaveer are running this racket". The dubious company is registered from June 18, 2017. The tender has been awarded to a bogus company. MD Prakash and IAS officers in the chief minister's office are directly involved in the illegal procurement of sand," Shettar alleged.
Shettar demanded that Chief Minister Siddaramaiah should turn over the entire deal to the CBI for investigation. "If he fails to do so, then we will assume that the CM too has a hand in the sand purchase racket," he added.
Shettar accused that a false address has been provided by the company that bagged the tender, that too by providing guarantee of a Singaporean bank. "In reality, the bank is not located in Singapore at all," Shettar revealed.
He added that neighbouring Tamil Nadu was importing sand from Malaysia at cheaper rates as compared to Karnataka's.
Karnataka government was paying Rs 2300 for a ton of Malaysian sand along with Rs 1100 to package it in bags. A total of Rs 3400 is being paid per ton, Shettar stated.
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