The Mysore Lokayukta police have submitted an inquiry report to the Upa Lokayukta in the Karnataka Housing Board (KHB) compensation payment scam.

The police report has recommended a detailed investigation into the scam. The report has named JD(S) MLA G T Devegowda’s sons G T Harish, G T Yaduvar and 44 others.

The KHB had acquired 157 acres of land in three villages namely Gungralchatra, Yelachanahalli and Kallur Naganahalli Kaval in Mysore district between 2007 and 2010, when G T Devegowda was the KHB chairman. 

Though the housing board had fixed compensation at Rs 30 lakh to 32 lakh per acre, gullible land owners were given only a few lakhs of rupees, while the rest was swindled by the housing board officials and middlemen, the report stated. The report said that the compensation was disbursed through three branches of Corporation Bank and Syndicate Bank in Mysore.

“Several accounts were opened in a single day at a single branch of a bank and crores of rupees were shown as withdrawn the same day. 

For all the accounts opened in the bank, the senior branch manager was the introducer. The illiterate villagers were given a few lakhs of rupees, which they thought was the actual compensation,” an official said.

A few villagers had submitted a complaint to Upa Lokayukta Justice Subhash B Adi when he had visited Mysore. Justice Adi had referred the matter to the Mysore Lokayukta police for inquiry.

“Besides my direction, the State government had also referred the matter for an inquiry. The report has suggested that a detailed investigation was required in the alleged scam. I have forwarded the report to the Lokayukta ADGP for further action. 

The report has recommended criminal proceedings against the people allegedly involved in the scam,” Justice Adi said.

The report has also named middlemen M D Manju and Shivashankar. The middlemen allegedly took the signature of the farmers on the consent letters and self-cheques. 

They later withdrew the entire compensation amount and gave only a part of it to the farmers.

“Though the report has not named G T Devegowda, his role also needs to be probed, since he was the chairman of the KHB. The report has, however, confirmed his sons’ role in the scam,” an official said.