Bangalore: Yogeshwar Lands in Megacity Project's Legal Trouble
From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Feb 23: Karnataka’s Forest Minister C P Yogeshwar, who has a running battle with Congress leader D K Shivakumar and has ordered a Departmental probe against the latter’s alleged illegal granite mining in Kanakapura taluk in Ramanagara district, has himself landed in legal trouble with a City Court ordering the minister and four others in cases pertaining to alleged irregularities in the Megactiy Developers and Builders Ltd.
The minister, who is Managing Director of Megactiy Developers and Builders Ltd (MDBL), a real estate company, was accused to have misappropriated funds to the tune of Rs 39 crore.
Taking cognizance of the 14 cases filed against Yogeshwar, much before he became a cabinet minister, by the Union Ministry of Corporate Affairs, the Eighth Additional Chief Metropolitan Magistrate (ACMM) Kiran Kini directed the minister to appear in the court after two weeks in the cases relating to the Mega City project.
The ACMM observed there was prima facie evidence to proceed against Yogeshwar under various sections of the Indian Penal Code and Companies Act. Apart from Yogeshwar, the judge also issued summons to four other accused.
The Serious Fraud Investigation Office (SFIO) of the Union Corporate Affairs Ministry, which investigated complaints from investors in the project, had pegged the alleged “misappropriation” committed by Yogeshwar, Managing Director of Megacity Developers and Builders Limited (MDBL), at Rs 39 crore.
The SFIO revealed that from 2005-06, MDBL entered into 450 sale agreements but sold only 62 sites.
After verifying 21 agreements, SFIO found that all of them were fraudulent and made with false documents.
However, MDBL had claimed that it had entered into a valid agreement with farmers for purchase of land and paid them money.
But the balance sheet provided by MDBL also could not provide evidence to prove that the amount was actually paid to farmers, the SFIO report said.
Yogeshwar is the latest BJP Minister to face court proceedings after Industries Minister Murugesh Nirani and Housing Minister V Somanna.
Former Chief Minister B S Yeddyurappa is already facing a spate of corruption cases. He was arrested and sent to jail, where he spent nearly three weeks, and finally managed to get bail.
Others against whom court cases are on include former ministers S N Krishnaiah Setty, H Halappa and Katta Subramanya Naidu, all of whom had been jailed for different durations and released on bail.
The former Tourism and Infrastructure Minister B Janardhana Reddy, who is already facing a CBI case in the alleged illegal mining activities, is behind bars in the Chanchalguda Jail in Hyderabad.