HDK Tried to Buy Rs 2,000 Cr Worth Sugar Factories for Rs 224 Cr!
From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Jul 1: Even as Karnataka Chief Minister B S Yeddyurappa and the ruling BJP are engaged in a bitter battle with former Chief Minister H D Kumaraswamy and the family of JD(S) supremo H D Deve Gowda over the alleged corruption charges involving both families, the State’s Excise Minister M P Renukacharya has dropped a bombshell by alleging that Kumaraswamy had made an attempt to buy two sugar factories in 2006-07 for a meagre Rs 224 crore when their actual worth was at least Rs 2,000 crore.
The Minister, who has been trying to become very close to the Chief Minister, said Kumaraswamy, who is also the State JD(S) President, had tried in vain the buy the Mysore Sugar Factory of Mandya and a cooperative sugar factory of Pandavapura in benami names by undervaluing the assets of two factories in 2006-07 during his chief ministership under the BJP-JD(S) coalition rule.
The two sugar factories, according to Renukacharya, owned 220 acres of lands and cogeneration plants. The Mysore Sugar Factory’s 'heritage’ building in Bangalore (near Ravindra Kalakshetra) alone cost over Rs 300 crore, he claimed.
Renukacharya said Kumaraswamy, who had threatened to go on an indefinite fast unto death demanding a probe into the allegations leveled by the ruling BJP that the Deve Gowda family had amassed ''illegal” wealth and assets worth Rs 1,500 crore if the chief minister failed to concede the demand within a week, had also misused Rs 78 crore sanctioned for the rehabilitation of the Mysore sugar factory of Mandya.
The then government had not spent money sanctioned for the revival of the factory, the Minister alleged and contended that the managements of both factories had passed resolutions for allowing Kumaraswamy to take over units.
''But he (Kumaraswamy) was unable to take over the factories following collapse of the JD(S)-BJP Government in 2007,” the Minister said and alleged that the JD(S) leader tried to grab assets and lands of both factories through benami deals.
Asked whether he order a probe into murky deals of Kumaraswamy, Renukacharya said he would bring the issue to the notice of the Chief Minister soon.
Responding to a query, he said the heads of both factories had provided information to him about benami deals.
On the demand of Deve Gowda, his sons H D Revanna and Kumaraswamy for a CBI probe into the allegations leveled against their families, the minister said former Prime Minister himself had termed the agency as ''chor bachao institute.”
''Why did they (Deve Gowda and his family members) suddenly develop so much faith and love for CBI,” Renukacharya asked.
Two Sugar Factories to produce Alcohol from Sugar Beet
The Minister said the State Government has permitted two sugar factories of north Karnataka – Shree Renuka Sugars Limited and Godavari Sugar Mills – to manufacture alcohol from sugar beet, a variety of vegetable beetroot.
Renuka Sugars Limited would manufacture alcohol from sugar beet in Belgaum district while Godavari Sugar Mills in Bagalkote district on a pilot basis.
A technical feasibility committee of the department has given formal approval to both factories to manufacture alcohol from the vegetable beetroot in two districts, he said adding: Sugar produced from sugar beet can supplement sugarcane molasses and would be used manufacture of alcohol.
The permission to two sugar factories would encourage farmers to cultivate the sugar beet crop in their farms. Two factories would purchase the vegetable planted by farmers, he said.
The department has given permission to manufacture wine for six vineyards. The excise revenue in the first quarter of the year (2011-12) recorded at Rs 2,400 crore against Rs 2,175 crore, an increase of Rs 225 crore.