The investigation was handed over to the Lokayukta police following a private complaint filed by JD(S) leader Y S V Datta, accusing former chief minister B S Yeddyurappa of indulging in irregularities in awarding the contracts.
In his complaint, Datta had accused Yeddyurappa offavouring a particular company for awarding a contract for work on the project.
The complaint stated that though the actual cost of the project was Rs 500 crore, the company inflated the cost to Rs 1,033 crore by a joint venture company of RNS and Jyothi.
The tender was awarded to RNS-Jyothi, which was blacklisted in Himachal Pradesh, Datta stated. The complaint also stated that the government released Rs 130 crore even before work on the project had begun. In return, Murudeshwar Company, a subsidiary of RNS group of companies, paid Rs 13 crore to Davalagiri Properties and Sahyadri Care and Diagnostics Private Limited, owned by Yeddyurappa’s sons and son-in-law, the complaint claimed.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks