Orders reserved on pre-arrest bail pleas of Yeddy, kin

A Bengaluru court on Wednesday reserved orders on the anticipatory bail applications of former Karnataka chief minister B S Yeddyurappa and his family members apprehending arrest in the illegal mining case registered by the Central Bureau of Investigation against them.

CBI judge D R Venkat Sudarshan reserved orders on the pleas of Yeddyurappa, his sons B Y Raghavendra and B Y Vijendra and son-in-law R N Sohan Kumar after conclusion of arguments by CBI counsel Ashok Bhan and senior counsel Ashok Haranahally for the former chief minister.

The CBI has registered a First Information Report against Yeddyurappa and others after the Supreme Court on May 11 directed it to probe charges of granting undue favours to firms involved in illegal mining in lieu of donations to a charitable trust run by his kin.

Subsequently, the CBI held raids at the residential and other premises of Yeddyurappa and others.

Bhan, quoting case diaries placed before the court, submitted Rs 20 crore was transferred by Jindal Steel Works to Prerana Educational and Social Trust, run by Yeddyurappa's sons.

This was subsequently transferred to Vivekananda Trust, of which Yeddyurappa is a trustee. The CBI, he said, was probing charges of conspiracy cheating, corruption and violation of Karnataka Land (Restriction on Transfer)Act, 1991, registered against

Yeddyurappa, his sons, son-in-law, JSW and others on a directive by the Supreme Court.

Bhan further submitted that after Yeddyurappa demitted office as chief minister and prior to his tenure, no contribution was made to the Prerana Trust. "The donations are quid pro quo for Jindal," he submitted.

The Supreme Court direction to the CBI to probe the case was the "bedrock" on which this probe had been initiated and as per Article 141 and 144 of the Constitution, all subordinate courts must assist the Supreme Court, Bhan stated.

He also said outstanding dues amounting to Rs 917 crore which had to be collected from various mining firms and paid to the government-run Mysore Minerals Limited, was not collected.

Bhan submitted that 1.20 acres of land was denotified by the government and later sold by Yeddyurappa's family members to South West Mining Company for pecuniary gain.

The whole process of denotification and sale of the land involved "forgery and falsification (of documents) and there is it is necessary that CBI further investigate the matter.

Haranahally, a former Advocate General, submitted that there was nothing wrong in donations to a Trust which was set up public welfare and the "trustees are not direct beneficiaries of donations to the Trust".