More trouble is brewing for former Karnakata Chief Minister Mr B. S. Yeddyurappa, and the Sajjan Jindal group.
A Supreme Court appointed panel has recommended a CBI probe into the alleged misuse of office by Mr Yeddyurappa to enable his kin to make windfall profits from a land deal with South West Mining Ltd (a Sajjan Jindal group company).
The panel — the Central Empowered Committee (CEC) — also sought a CBI investigation to find out if there are any linkages between two donations of Rs 10 crore each made by South West Mining Ltd to Prerana Education Society, run by the former Chief Minister's close relatives.
The CEC also wanted a probe into links to these incidents, with the alleged receipt of illegal mineral by JSW Steel Ltd and the alleged undue favour shown to the company in respect of the mining lease of Mysore Minerals Ltd (a Karnataka State Government company).
Iron-ore linkage
The CEC report was submitted before a Forest Bench of the Supreme Court, headed by the Chief Justice, Mr S.H. Kapadia, on Friday.
Tracking this development, shares of JSW Steel fell 1.6 per cent, to close at Rs 750.85 on the BSE. JSW Steel operates a 10 million tonne per annum steel plant in Bellary, Karnataka. The company has been trying to secure an iron ore linkage from the State Government for several years.
The CEC report followed an application filed in the apex court by an NGO, Samaj Parivartan Samudaya, and others. This application sought a CBI probe into serious illegalities allegedly committed by top politicians and major corporate groups, including the Jindals and the Adanis, in Karnataka. On Friday, shares of Adani Enterprises Ltd fell 4.24 per cent to close at Rs 287.90 at the BSE.
The CEC had asked for a CBI investigation into certain payments to two companies whose directors/shareholders are close relatives of Mr Yeddyurappa, and whether there was any link between such payments and grant of mining lease to one Mr Praveen Chandra.
The report came after allegations of large-scale illegal mining in Karnataka.
The CEC also wanted the CBI to look at cases during Mr Yeddyurappa's tenure as Chief Minister in which there was denotification of land from acquisition and where permission was given for conversion from agriculture to non-agricultural (residential) purpose and, further, the sale of that land to South West Mining Ltd.