HDK fires another graft salvo at BSY

Releases documents on CM family bid to acquire cement factory

JD(S) Karnataka unit president H D Kumaraswamy on Wednesday alleged that Chief Minister B S Yeddyurappa’s family members purchased a financial institution in Kolkata with the aim of acquiring a “loss making” cement factory in Belgaum district.

Releasing documents in support of his allegations at a press conference here, Kum­a­r­a­s­wamy said Yeddyurappa ba­iled out the loss-making Ratna Cement factory at Yadwad in Belgaum district, and after becoming chief minister, in 2009, his family members along with former industry minister Katta Subramanya Naidu’s son-in-law purchased it.

Pegging the scam at Rs 1,500 crore, Kumar­aswamy said that Yeddyurappa illegally waived off the interest money of Rs 7.5 crore for a company during its liquidation. According to the JD(S) le­ader, for setting up a plant in 1997, Ratna Cement (Yadwad) Ltd took a Rs 4-crore loan from the Karnataka Sta­te Industrial Investment Development Corporation ( KSIIDC), a state government undertaking in 1996. When the company failed to repay the loan, it applied for a one-time settlement with the KSIIDC. 

While the loan was sett­led for Rs­ 4.8 ­­crore­,  the State government waived off the interest amount. Besides, the KSIIDC also acqui­red 2.9 lakh shares from the company, the JD(S) leader alleged.

Subsequently, Kumaraswamy alleged, the chief minister’s family members purchased Indivar Kutir Private Ltd, an NBFC based in Kolkata. Yeddyurappa’s daughters-in-law Manakar Prema and Tejaswini Raghavendra became its directors.

After acquiring Indivar Kutir they bought up the shares of Ratna Cement for Rs 3.24 crore, former minister Katta Subramanya’s son-in-law Dr Suriraj Vandavalli, Indivar Kutir and Bhagath Homes Private Ltd (which according to Kumaraswamy also belongs to the chief minister’s family) made an investment of Rs 78 crore in it either through loan or by purchasing shares as on March 2010.

Kumaraswamy alleged that after taking over the company, the State government allotted 1,417.5 acres for limestone mining, a basic raw material for the cement factory, in Yadwad village in 2009. He alleged that though originally the mining area belonged to a person named S N Singit, the Mines and Geology Department allotted 1,417.5 acres to Ratna Cement without getting mandatory approval from the Environment and Forest Ministry.

He alleged that when Yeddyurappa was deputy chief minister in 2006, he bailed out the company from crisis and after he became chief minister, his family members completed the acquisition in 2009.

In a statement in Bangalore, N Chandrashekar, Director, Ratna Cements (Yadawad) Limited said the allegations of Kumaraswamy were ill conceived and travesty of truth. Unlike alleged, Yeddyurappa was not in power when the application was processed. The period pertains to the governor’s rule.  The Director said that Yeddyurappa or his family members do not have any controlling stake in the company as alleged.

BSY to file defamation suits

Hitting back at the opposition, Chief Minister B S Yeddyurappa on Wednesday said he would file defamation suits against JD(S) leader  H D Kumaraswamy and Leader of the Opposition in the Assembly Siddaramaiah for levelling false charges against him, reports DHNS from Bangalore.

“The allegations made against me are baseless and totally false,” Yeddyurappa said and added a detailed rebuttal to the charges would be released at the earliest.