Karnataka Lokayukta has indicted the Chief Minister, Mr B S Yeddyurappa's Government of causing loss of a whopping Rs 16,085 crore to the state exchequer between 2006 and 2010 due to large-scale illegal mining.

The Chief Minister's family has also been directly named for receiving donations from a mining company.

In the Lokayukta report, which was submitted to the State Chief Secretary, Mr S V Ranganath today, also mentions direct involvement of Reddy brothers from Bellary – comprising ministers Mr G Janardhan Reddy and Mr G Karunakara Reddy and their associate Mr Sriramalu.

The Rajya Sabha MP and mining company owner Mr Anil Lad along with his wife have being named in the report.

Former Karnataka Chief Minister, Mr H D Kumaraswamy, has been named in the report for granting two mining licences, the report has also recommended that action be taken on 787 government officers who were involved in the assisting or facilitating large-scale irregularities.

The Karnataka Lokayukta Mr Justice N Santosh Hegde later in the evening addressing a press conference said his officials have submitted a 25,288- page report to the State Government. A copy of the report on illegal mining has been sent to the Governor, Mr H R Bhardwaj. “Since the governor is the competent person to prosecute the Chief Minister under various sections of Prevention of Corruption Act,” said Mr Justice Hegde.

The report has explained the irregularities carried out in mining. Illegal mining was rampant in the districts of Bellary, Chitradurga and Tumkur.

CM's involvement

Mr Justice Hegde said a mining company in Karnataka had donated Rs 10 crore to a trust owned by the Chief Minister's family. The donation was made by the company for reasons other than genuine.

The mining company also paid Rs 20 crore for purchase of land by the trust in Rachenahalli far above the guidance value of Rs 1.40 crore, which makes for an offence under Prevention of Corruption Act. This has been brought to the notice of the Governor.

Mr Justice Hegde pointed out that he found it extremely difficult to accept that a company, which did not have financial resources, should borrow from other companies to make donation. He mentioned that the mining company had paid money to Mr Yeddyurappa's family by cheque.

Regarding the Reddy brothers, Mr Justice Hegde said: “Their claims of not doing mining business in Karnataka are false. But our officers have found clear evidence of them indulging in mining in the State contrary to their claims that they were not involved.”

Mr Justice Hegde also said people involved in the illegal mining should be tried in accordance with law under IPC, Forest Act, FMRDA and PCA. The loss incurred by them should be recovered four times the loss.

The report contains 31 chapters and a separate 943 pages of Mr Justice Hegde's report and recommendations. Declining to give excerpts or copies, Mr Justice Hegde announced who ever is interested should apply for copies under RTI act by paying prescribed fee.

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