It’s damning: Yeddi’s family benefited from illegal mining, says Lokayukta

The report is as damning as it could get. And it should leave Karnataka’s Chief Minister Yeddyurappa squirming.

This is what its author Santosh Hegde said today:

• Illegal mining in Karnataka caused a loss of Rs 16,085 crore to the exchequer between 2006 and 2010.

• A mining company had donated Rs 10 crore to the trust of a family member of the chief minister. The trust has nothing to do with the mining business.

• Some companies paid money to Yeddyurappa’s family by cheque.

• His sold land for Rs 20 crore to a mining company, which had some mining related work with the government.

• The state government has not taken any action to stop illegal mining.

The whole story will take some time to come out — the report runs into 25,288 pages and the illegalities committed in the mining scam comes to 31 chapters. But whatever Hegde allowed a glimpse of through his words is sensational enough.

Former chief minister and JD(S) leader HD Kumaraswamy, the wife of Congress member of Parliament Anil Lad, the Reddy brothers and minister H Sriramulu find place in the report. The number of officials named goes beyond 600. Hegde said his probe has found evidence of the Reddy brothers’ involvement in mining in Karnataka contrary to their claims otherwise.

“The enquiry has found large scale involvement of officials, powerful people both in the administration as well as in the ground level,” said Hegde, adding, “Having come to the conclusion that there is as a matter of fact an offence made under the Prevention of Corruption Act I have made a recommendation to the Governor to take further action… I have made a recommendation for prosecuting everybody. I have stated this to the Governor. It is for him to act,” he added.

He said the Lokayukta had told the government earlier that illegal mining was rampant in Bellary, Chitradurga and Tumkur and it could be controlled but it took no action. “We had seized a huge quantity of iron ore at a port near Karwar in 2010, (but) it went missing,” he added.

Yeddyurappa has not spoken up so far. But his principal rival, Kumaraswamy, who escapes with a rap on the knuckle, has already demanded his resignation. The demand is expected to get louder.

The action shifts to New Delhi now, where he would meet party’s top leadership today. The meeting would decide whether Yeddyurappa would continue as chief minister.