BJP?sees Rs 190-cr scam in rural development dept

May 7, 2016

Bengaluru, May 7: The BJP on Friday said a lot of procedural and financial irregularities had taken place in the establishment of water testing laboratories and purchases made by the Rural Development and Panchayat Raj (RDPR) department.shattal

Leader of Opposition in the Legislative Assembly Jagadish Shettar told reporters that the department spent Rs 190 crore to establish water quality testing labs in 146 taluks since 2014. RDPR?Minister H?K Patil encouraged nepotism and is directly involved in the scam. The government must cancel the tender for the works and order an inquiry, he demanded.
The senior BJP leader released some documents to support his claims. However, he did not come out with any documentary evidence to show Patil's direct involvement.

Shettar said a certain Prasad Rayapati had got the tenders through his companies in three phases to establish the labs. In the first phase, the work orders were issued for establishing labs in 80 taluks. In the second phase, the work orders were given to Prasad in deviation of the tender process. In the final phase, tenders of other bidders were rejected on technical grounds to help Prasad as he remained the sole bidder.

Rules were changed'
Shettar said that to participate in the tender process, contractors/participants should be either manufacturers or dealers of the products required for a project. Though Prasad was ineligible to participate in the tenders, the department changed the rules to help him. The department stated the work could be taken up in association with another company.

The rules specify that the contractors, of their five years' existence in business, should have transacted business worth Rs 57 crore in two years. To fulfill this norm, Prasad has tied up with Srinivasa Constructions India and gained backdoor entry, Shettar said.

Prasad had not submitted insolvency certificate worth Rs 15 crore, which is compulsory. Prasad and the companies which he has created - Ray Environ - and Global Technologies, Sawant Instrument Private Limited, Hyderabad and Gen Next Lab Technologies, New Delhi have illegally submitted the certificates to get the work orders, he charged.

Shettar said there have been financial irregularities in water testing too. For instance, officials have written to the department that the firm floated by Prasad has taken money without carrying out lab tests on borewell waters. Lab reports have been submitted even for those borewells which have been defunct, he pointed out.

Comments

wellwisher
 - 
Saturday, 7 May 2016

We accept present Govt correption far better than previous BJP Govt. All Kannadigas want a peaceful anti communal Govt. At present Congress N AAP are the right party.
Jai Hind Jai Karnataka

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News Network
March 20,2020

Bengaluru, Mar 20: Two COVID-19 positive patients in Karnataka have fully recovered and will be discharged today.

Karnataka Medical Education Minister Dr K Sudhakar said: "Two COVID-19 positive patients have completely recovered and will be discharged tomorrow. They will be kept under home quarantine for 14 days as a precautionary measure."

The number of COVID-19 positive patients in Karnataka stands at 14 as of today.

"The total number of positive cases of COVID19 in India stands at 173, including 25 foreigners. Four deaths (1 each) have occurred in Delhi, Karnataka, Punjab and Maharashtra," said the Ministry of Health and Family Welfare in a statement.

According to official data provided by the Ministry of Health, as many as 15 people infected with the virus have been discharged after receiving treatment.

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News Network
June 6,2020

Jun 6: Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL.

A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to Dewan Housing Finance Corporation Ltd (DHFL), Religare Finvest, Fedders Electric and Engineering Ltd and Leel Electricals Ltd, Karnataka Bank said in a regulatory filing on Friday.

The maximum is owed by DHFL at Rs 180.13 crore, followed by Religare Finvest Rs 43.44 crore, Fedders Electric Rs 41.30 crore and Leel Electricals Rs 20.65 crore.

"DHFL (defaulted entity) dealing with us since 2014 had availed various credit facilities under consortium arrangement wherein, we were one of the member banks. In view of Early Warning Signals (EWS) in the conduct of the account and other developments, the account was red flagged on November 11, 2019.

"The borrowing account was classified as Non-Performing Asset on October 30, 2019 and now, for misappropriation & criminal breach of trust & diversion of funds in the credit facilities extended earlier to the company, a fraud amounting Rs 180.13 crore has been reported to RBI," Karnataka Bank said.

Likewise, Religare Finvest Ltd (RFL) was dealing with the bank since 2014, availing various credit facilities.

Following classification of this account as non-performing in October 2019 by a consortium member, Karnataka Bank reported to RBI a fraud amounting to Rs 43.44 crore in the credit facilities extended earlier, on account of diversion of funds.

Leel Electricals was classified as NPA account in March 2019 and it reported to RBI a fraud amounting to Rs 20.65 crore in the credit facilities to the company on account of diversion of funds.

"In all the referred three non-performing accounts, necessary provisions have been made in full to be spread across four quarters," it said.

Fedders Electric and Engineering Limited was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion.

The account has already been fully provided for, it added.

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News Network
February 16,2020

Hubballi, Feb 16: Rs 72,000 crore investment proposals were received at the Invest Karnataka meet, here on Friday, for the states northern region, said an official on Saturday.

"About 50 foreign and domestic firms have proposed to invest Rs 72,000 crore in the northwest and northern regions of the state and a dozen companies signed agreements with us," state Industries Department Secretary Gaurav Gupta said.

Rajesh Exports, Bengaluru-based group, signed an agreement to set up a manufacturing unit at Dharwad to rollout electric vehicles and make lithium ion batteries.

"Rajesh Exports proposes to invest about Rs 50,000 crore for manufacturing electric cars and lithium ion batteries for the domestic and overseas markets. It will generate about 10,000 jobs," said Gupta.

Similarly, Sonali Power has signed a pact with the state nodal agency (Udyog Mitra) to set up a solar power plant at Davangere at a cost of Rs 4,800 crore, which will generate 2,100 direct jobs.

Chief Minister B.S. Yediyurappa claimed several firms had come forward to collectively invest Rs 1 lakh crore since the BJP government came into being in July 2019.

"Many Indian and foreign firms will sign agreements with the state government at the 3-day Global Investors meet in Bengaluru on November 3-5," Yediyurappa said at the 'Invest Karnataka' meet.

Noting that Karnataka was rich in natural and human resources, especially in high-tech and skilled workforce, Yediyurappa said investment opportunities were plenty in aerospace, automobiles, machine tools, electric vehicles and bio-technology besides information technology.

"About 40 global firms expressed interest to invest in the state at a roadshow held at Davos, Switzerland, on the margins of the World Economic Forum (WEF) meet on January 23," he said.

Under the new industrial policy, the state government will set up clusters to make toys at Koppal, textiles in Bellari, solar equipment at Kalaburagi and farm machinery at Bidar.

"We are committed to make North Karnataka a power house of industries for the region's development, with Hubballi-Dharwad as the growth hub," Yediyurappa said.

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