Friday, July 29, 2011

Rs 215 cr Reddy money stashed abroad: report

New Delhi: The Lokayukta report indicts not just politicians but also corporate houses and the mining mafia. The report names Jindal Steel among the corporates that should be investigated for giving bribes.

The Bellary mining mafia is exposed and it cost BS Yeddyurappa the job of the chief minister. The mighty Reddy brothers might find it tough to recover from here all because of the meticulous probe by Lokayukta Justice Santosh Hegde and his team.

CNN-IBN has the report which indicts the chief minister and several other leaders cutting across party lines. The nation was robbed of precious iron ore by the greedy.

Between 2006-2010, 3.98 metric tonnes of iron ore worth Rs 12,228 crore was illicitly exported. This could not have happened without the government machinery's help.

Not just politicians, India's top business houses also benefitted from this. The Lokyayukta report indicts Jindal subsidiary South West Mining. They are accused of paying bribe to Yeddurappa's family to secure a mining lease.

Lokyayukta probe says the company paid Rs 20 crore for a plot in Bangalore belonging to Yeddyurappa's son-in-law while the market price was only Rs 1.24 crore. The company also profited by breaking the law and selling iron ore to a third party between 2003-2004 instead of using it in its own steel plants.

Hegde says bribe givers are also equally guilty. Jindals have refused to comment.

The Reddy brothers operated a mafia operation in Bellary to facilitate illegal mining says the Lokyayukta report.

In all, 382 companies indulged in this rampant illegal trade and the ringleader are the Reddy brothers. According to the Lokayukta report, they allegedly paid Rs 41 crore as protection money to K Mahesh. Profits of this were also stashed away abroad. Janardhan Reddy allegedly parked Rs 215 crore rupees in British Virgin Islands.

Lokayukta now wants the RBI and Central government to probe the money stashed away in British Virgin Islands.

Justice Hegde says the scam could be even bigger than what he could unearth. Now it remains to be seen whether the report is probed and acted on or will this also like many others gather dust with time.


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