Daijiworld Media Network - Bengaluru

Bengaluru, Mar 7: A probe is underway into financial irregularities and illegal activities in 11 sugar factories across Karnataka, including the multi-crore scam at the Brahmavar Sugar Factory in Udupi district, said cooperation minister Shivanand Patil.

Responding to a calling attention motion by legislative council member Manjunath Bhandary, the minister revealed that the government incurred a loss of Rs 14 crore due to misappropriation in the auctioning of unused materials from the closed factory.

Cases have been registered against those responsible, and investigations are in progress, he said. He added that a chargesheet has been filed against one government employee and 10 directors, and police have sought prior approval from the government to prosecute them in court.

A separate inquiry is also being conducted under the leadership of retired judge Radhakrishna Holla. Minister Patil assured that no accused involved in the scam would be spared.

Calling the Brahmavar Sugar Factory and the Varahi project classic examples of government mismanagement, Manjunath Bhandary urged strict action against those responsible for the financial irregularities.