Karnataka HC rejects BJP MLA Madal Virupakshappa’s bail plea

The Karnataka High Court on Monday rejected anticipatory bail to Madal Virupakshappa, BJP MLA from Channagiri constituency in the bribery case. The court also cancelled the interim anticipatory bail granted on March 7, 2023, observing that Virupakshappa’s custodial interrogation is necessary at this stage.

The court noted that though earlier it had granted the interim anticipatory bail until disposal of the case, now there is sufficient evidence to show the involvement of Virupakshappa in the commission of offence as per the case diary of the police and the statement of one Mohan, Managing Director of Karnataka Soaps and Detergents Limited (KSDL).

“Therefore, the custody of the petitioner is imminent for the Lokayukta police to interrogate him in the matter. Therefore, at this stage, this Court feels that the interim anticipatory bail requires to be cancelled as the petitioner-accused No.1 (Virupakshappa) has not properly co-operated with the investigation officer,” Justice K Natarajan has said in the order.

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Virupakshappa had resigned as the chairman of the KSDL after the Lokayukta police registered an FIR against him and his son Prashanth Madal. Virupakshappa is named as accused number one while his son Prashant Madal is accused no 2 in the case relating to a tender issued by the state owned KSDL. Prashant was caught red-handed by the Lokayukta police while accepting Rs 40 lakh bribe. In the subsequent search at a house, the Lokayukta police had seized Rs 6.10 crore cash.

The Lokayukta police had claimed that after the granting of interim anticipatory bail, Virupakshappa had not been cooperating with the investigation. The Lokayukta police contended that Virupakshappa was giving evasive answers. According to the Lokayukta police, the Managing Director of KSDL had given a statement under CrPC sections 161 and 164 and revealed that Prashanth had actively participated in the tender process at the instance of his father.

The court noted the statement by the Managing Director of KSDL that there were frequent instructions given by Virupakshappa through his son in the tender floating activities. The Managing Director had also stated that the tender was finalised at the instance of Virupakshappa.

Citing the Apex Court judgement in P Chidambaram's case, the bench said that the police are required to investigate the matter for custodial interrogation in economic offences. “Though the alleged offence is not directly on the economic offence against the State, but the KSDL is a public limited company belongs to the State Government, it has floated the tender process for purchasing the chemicals or raw materials for production of Mysore Sandal Soaps. If the company pays more than crores of rupees as commission or bribe, one cannot expect the good quality of raw materials will be supplied by the said company and the very tender process followed by the tender accepting Committee and accepting the lowest price and good quality of raw materials will be frustrated,” Justice Natarajan said.

The bench added, “The public auction process through online would remain as an empty formality and eye wash to the public as they are following the KTPP Act and they are giving the tender to a person who is bribing the Committee or the head of the Committee who is holding the higher position in the tender procuring process.”