State govt put on mat

Land bought for Rs 5 lakh, sold to KHB for Rs 50 lakh

 The Opposition demanded that the Government must order a CBI probe into the issue. However, Chief Minsiter Yeddyurappa ordered a probe by an Additional Chief Secretary into land acquisition processes done by the Housing Board in the last five years. He said, he had directed the KHB to stop purchasing land soon after he learnt about the project in March 2008.

Making a preliminary submission on an adjournment motion sought to be moved on the issue, H D Revanna (JD-S) alleged that the Government in Oct, 2008 had given approval to the KHB to purchase 959 acre of farm land in Chikkaballapur and surrounding areas at a whopping Rs 50 lakh per acre, though the guidance value of the land was just between Rs 2 lakh and Rs 3.5 lakh per acre.

The KHB has bought land from S N Srinivasa Setty, brother of former Housing Minister, and not directly from farmers. “Even before the Government approved the project, Srinivasa Setty had purchased land from farmers at an average of Rs 5 lakh per acre and sold it to the KHB at Rs 50 lakh per acre,” he charged.

Malur MLA S N Krishnaiah Setty was the Housing minister when the alleged scam had taken place between early 2008 and March 2009, according to Revanna.
Krishanaiah Setty was present in the House when the debate was on.

“The then Housing minister had planned the project to benefit his family member. It is a scam involving over Rs 400 crore,” he charged.

Though Speaker Jagadish Shettar rejected request for adjournment motion, he allowed a debate on the issue.

JD(S)’ allegations

*Former minister Krishnaiah Setty’s brother Srinivasa Setty purchased land from farmers at Rs 5 lakh/acre and sold it to the KHB at Rs 50 lakh/acre

*Govt turned a blind eye when the KHB purchased land from Setty

*The scam involves irregularities totalling more than Rs 400 crore

*Govt shunted out Kolar DC in Oct 2008 as he disagreed land sale at Rs 50 lakh/acre

*CM did not intervene to stop the deal.

*KHB hurriedly issued a cheque of Rs 8.97 crore to Srinivasa Setty on March 3, the day the poll code came into effect.

CM’s defence

*Land was bought from Setty at Rs 50 lakh / acre

*But  there was no irregularities

*Land rate has shot up in Chikkaballapur

*Rs 55 lakh per acre was paid during the Governor’s rule near Chikkaballapur for
a different project

*For the KHB’s Suryanagar project in Blore, Rs 35 lakh / acre was paid

*Government badly needs land for its various projects.

*If Opposition members can help get the land at less rate, the Government will be
happy.

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