Saturday, November 18, 2006

Karnataka CM denies vindictive action against Shivakumar

Friday, 17 November , 2006, 10:18

Karnataka Chief Minister H D Kumaraswamy today denied that he had indulged in 'vindictive politics' against Congress leader D K Shivakumar as alleged by him yesterday.

Speaking to newsmen after releasing copies of several documents related to the illegal stocking of iron ore issue, he said 20 companies were engaged in iron ore collection business at Nandhihalli village in Bellary district of which eight belonged to Mr Shivakumar.

The forest officials had arrested three people in Bellary on Tuesday night and booked cases against 15 others for allegedly storing over two lakh tones of iron ore valued at Rs 27 crore in the yard belonging to PKP mines illegally. Three of the names against whom cases were filed included that of the wife, brother and sister of Mr Shivakumar.

Explaining the officials action, he said the mobile squad of the forest department raided the yard of PKP Mines in that area and seized iron ore which was illegally stocked there. When Mr Shivakumar was the Urban Development Minister he had misused his powers and brought pressure on the officials of the Mysore Minerals Company to secure iron ore at Rs 350 per ton while other companies quoted Rs 1250. Nearly five lakh tons of waste dump were purchased by his companies at Rs 25 to Rs 75 a ton.

He said there was an agreement between Mr Shivakumar's companies and the PKP Company, with regard to sale of waste dump, but details of transactions were not mentioned thereby 'committing fraud' on the state's exchequer in the form of sales and income taxes. His company lawyers had also misled the High Court in connection with the case, he said.

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