'CM kin trust received Rs 13-crore kickback'

JD(S) State President H D Kumaraswamy told mediapersons that Davalagiri Property Developers Ltd and Sahyadri Health Care and Diagnostics Pvt Ltd promoted by Yeddyurappa’s sons, B Y Raghavendra and B Y Vijayendra, have received illegal gratification of Rs 13 crore in 2009-10 from Murudeshwar Power Corporation, a sister concern of RNS Infrastructure Ltd.

A consortium of RNS Infrastructure allegedly paid the kickback after bagging a Rs 1,032-crore Upper Bhadra Lift Irrigation project in 2008-09. An expert committee had found a flaw in cost estimation and recommended modification.

The Karnataka Neeravari Nigama (KNN), however,  awarded the contract to the company overlooking all lapses, he alleged.

The project, which was estimated to cost Rs 550 crore in 2007, was enhanced to Rs 1,032 crore while awarding the contract in 2008.  Jyothi Ltd, which was a part of the consortium, is a blacklisted company, Kumaraswamy alleged.

According to him, the KNN released Rs 103.20 crore to the company as an advance soon after the award of contract.

The company through its sister concern, Murudeshwara Power Corporation, immediately paid Rs 13 crore to the companies of the CM’s sons. Murudeshwara Corporation in its financial statement for 2009-10 had shown that it had advanced Rs 11 crore to Davalagiri Property Developers and invested Rs 2 crore as equities of Sahyadri Health Care and Diagnostics. Interestingly, the authorised share capital of Sahyadri company was just Rs 5 lakh, the JD(S) leader said.

Refuting the allegations, Yeddyurappa’s Political Secretary B J Puttaswamy said the money paid to the companies was not a bribe and there was nothing illegal in the dealings.

Murudeshwara Corporation and Davalagiri Developers have entered into a joint  agreement, and hence the former has invested Rs 11 crore. Similarly, Murudeshwara Corporation has invested Rs 2 crore in Sahyadri Ltd to set up a hi-tech hospital in Shimoga, he said.

Water Resources Minister Basavaraj Bommai has said that it was H D Kumaraswamy who took the decision to award the Upper Bhadra Irrigation project to a blacklisted company when he was the chief minister in 2007.

The minister claimed the Karnataka Neeravari Nigam in its Board meeting held on June 4, 2007 took the decision to award the contract to RNS Infrastructure Ltd consortium. Kumaraswamy was the chairman of the KNN Board then, he said.

Bommai claimed the project cost was enhanced from Rs 550 crore to Rs 1,032 crore much before the BJP came to power in 2008. The minister, however,  remained tightlipped  over the  allegation that the company has paid Rs 13 crore to Yeddyurappa for awarding the project.