Janata Dal (Secular) leader Y.S.V. Datta has filed objections to the B-report filed by the Lokayukta police in the Upper Bhadra case involving former chief minister B.S. Yeddyurappa. The counsel for the complainant stated that the State government had released funds to RNS Infrastructure at the Bhadra project site and, out of the same amount, Rs 16 crore was diverted to the accounts of Sahyadri Healthcare and Diagnostics Pvt Ltd and Dhavalagiri Properties, owned by Mr Yeddyurappa’s kith and kin.
The counsel for the complainant, Mr P.N. Hegade, said that a chartered accountant’s report attached with the B-report was sufficient to chargesheet the accused. He said that the contention made by the complainant was not that Kirloskar company should have got the bid. Instead, it was about the irregularities and alleged kickbacks received after awarding the bid to RNS-Jyothi joint venture. Mr Hegade said the Lokayukta police had taken legal advice of the then state Advocate General B.V. Acharya who recommended filing of a B-report. However, before being appointed as Advocate General, Mr Acharya had given a favourable legal opinion for RNS Infrastructure during the tender proceedings.
“According to Supreme Court judgment, any state-appointed Special Public Prosecutor or Advocate General’s opinion should not be taken in the investigation. The tender process itself involved irregularities. The Karnataka Niravari Nigam (KNN) had appointed a three-member committee to suggest who between the two companies – Kirloskar and RNS - should get the project. The members could not submit a unanimous report and instead filed three different reports. While two favoured Kirloskar, one member voted for RNS. Within four days, the project was allotted to RNS and Kirloskar moved the High Court. The KNN told the court it will take appropriate action. However, despite this project was allotted to RNS,’’ Mr Hegade said.
On March 30, 2010, `63.27 crore was transferred to Bhadra project account of RNS. However, out of this amount, Rs 40.28 crore was transferred to RNS’s Bengaluru account with Axis Bank and Rs 18 crore to Trinity branch account of Canara Bank the same day. The same amount was later moved to Sahyadri Healthcare through various transactions. Later, `60 crore from the same money was transferred to the account of Dhavalagiri Properties, the petitioner contended. The Lokayukta special court has posted the case for final hearing on Saturday.