Cash-for-contract scandal hit KSDL embroiled in another scam of Rs 20 crore, reveals govt document
The cash-for-contract scam-hit Karnataka Soaps and Detergent Limited (KSDL) is embroiled in yet another alleged scam of Rs 20 crore relating to procurement of substandard raw material for its products including the Mysore Sandal Soap, reveals a government document.
The Principal Secretary of the Commerce and Industry Department wrote a letter to the Managing Director of KSDL on February 28 regarding the steps taken in connection with the 'financial irregularities of more than Rs 20 crore in the purchase of raw material soap noodles' three years ago.
Within days, the KSDL chairman and the BJP MLA from Channagiri Madal Virupakshappa's son Prashanth Kumar M V, was caught red-handed by Lokayukta officials collecting a bribe of Rs 40 lakh cash from a contractor, allegedly on behalf of his father at the KSDL office.
Further raids led to the recovery of Rs 8.23 crore cash from the house of the Madal family, huge quantity of gold and silver ornaments and large investment in land.
Prashanth is a Karnataka Administrative Services officer and is the chief accounts officer of Bangalore Water Supply and Sewerage Board.
The scam, according to the KSDL sources, had taken place in 2020 and an investigating team was set up accordingly, show the document.
The investigation officer had found that at least four officers holding high positions in the KSDL got the government job based on a degree certificate from an unrecognised university. He had recommended action against them, the letter said.
The government directed the KSDL to furnish the action taken report on May 31, 2021. However, the state government said it 'did not receive any information on the action taken report.' The KSDL also did not tell the government about the action taken against officers against whom Lokayukta had recommended recovery of the amount, the letter added.
The KSDL Managing Director, according to the letter, did not provide information about the action taken against a general manager who was holding the senior position in the organisation based on an 'ineligible' educational qualification.
The government also said in the letter to the MD that the KSDL had entered into an agreement which allowed the Karnataka Milk Federation to utilise 1,450 sq ft of its land on its campus.
"However, the administrative officers 'colluded and allowed a private organisation to operate a hotel in 3,000 sq ft land. Regarding this case, the lawyers of the organisations are being requested to dispose of the case at the earliest," the letter read.
Regarding the case, the letter further said, "You said that the case is in progress and the next date of hearing has not been fixed yet but you did not furnish any detail to the government." The state government also took objection over not furnishing the details of the action taken even after a year.' "Immediately send a detailed report with clear documents with the action taken report to the state government," the letter said.
According to KSDL sources, it has not sent its reply to the state government.
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Minister Madhu Bangarappa invites JDS MLA to join Congress during public event
Shivamogga: Shivamogga District In-charge Minister Madhu Bangarappa performed a Gudali Puja on Sunday for the development of Barehalla and Hi Hole Dams in the taluk, along with road development work in Puradalu village.
At the program, Madhu Bangarappa extended an invitation to JDS MLA Sharada Pooryanayaka to join the Congress party, using an English proverb to make his point.
"Sharada Pooryanayaka loves me very much. But when elections come, it becomes very difficult. Now we have power. That is why I am calling her to join our party. Our father always said that when it is hot, we should dry the grass. Now that it is hot, my sister should make a decision," he said, extending an open offer to the JDS leader.
Bangarappa emphasized that providing facilities for the Sharavati flood victims is the government's duty. He noted that the dam built for these victims in Puradalu village was damaged due to excessive rainfall. To address this, he announced the launch of development work worth Rs. 3 crore, fulfilling his previous promises.
He stated that while the government is allocating funds for guaranteed schemes, it is also ensuring grants for developmental projects. "As a minister, I am responsible for providing quality education to children. I am working with great emphasis on education. Since the education department is vast, everyone is cooperating," he said.
The minister urged parents to ensure their children's education is not disrupted due to frequent holidays. He also mentioned that a facial attendance system is being considered to monitor school attendance more effectively.
Instead of focusing on building large temples in villages, he stressed the importance of constructing bigger schools, stating that "If schools are built big, God will bless them."
MLA Sharada Pooryanayaka stated that priority is being given to the development of villages in the Sharavati floodplain area. She also acknowledged the efforts of Deputy Chief Minister D.K. Shivakumar and thanked District In-charge Minister Madhu Bangarappa for securing funds for the Barehalla and Hi Hole Dam development.
Puradalu Gram Panchayat Vice President H.S. Pradeep delivered the introductory remarks.
The event was attended by Congress District President R. Prasanna Kumar, State Bhovi Development Corporation President S. Ravikumar, Guarantee Schemes Authority District President Chandrabhupal, and Congress leaders Kalgodu Ratnakar, G.D. Manjunath, Dr. Srinivas Karianna, Y.H. Nagaraj, as well as Puradalu and Agasavalli Gram Panchayat Presidents and members.
