The Karnataka Industrial Areas Development Board (KIADB) office in Dharwad has come under intense scrutiny following allegations of widespread irregularities in land acquisition processes. Last year, Special Land Acquisition Officer V.D. Sajjan was found to have transferred Rs 30 crore on his last day before retirement, raising suspicion of financial misconduct. Before this, an additional Rs 20 crore had been transferred, sparking concerns of a double payment scam. Sajjan, now a key accused, has already served time in jail.
A charge sheet filed by the CID concerning the double payment scandal alleged that Rs 30 crore was transferred in a single day. The investigation faced criticism for lapses, prompting demands for a more thorough inquiry.
On August 9, the Enforcement Directorate (ED) entered the fray, with a team of officials arriving from Bangalore to raid the Dharwad KIADB office. The investigation is expected to uncover more details about the alleged misuse of funds for land acquisition, with accusations ranging from double compensation for the same land to the opening of fake bank accounts in the name of farmers.
Notably, 24 accounts were reportedly opened in a single branch of IDBI Bank, linked to the alleged fraudulent activities. The KIADB also faces allegations of illegal activities related to land acquisition for Hubli Airport and in the villages of Kelageri and Mummigatti in Dharwad.
The ED’s investigation extended to the KIADB office at Khanija Bhawan in Bengaluru, where further evidence is being sought. Dayananda, the department’s Special Deputy Commissioner, has also been implicated, although his name was not included in the CID charge sheet. The latest developments come after Basavaraja Koravar lodged a complaint with the Enforcement Directorate, leading to raids.
A social activist named Dinesh Kallahalli complained to Chief Minister Siddaramaiah, alleging illegalities in allocating CA (civic amenities)sites by the KIADB. The complaint highlighted widespread corruption within the KIADB, amounting to hundreds of crores of rupees. Kallahalli specifically accused Industries Minister M.B. Patil of being directly involved in the scam.
Kallahalli further alleged that the Minister, the Principal Secretary of the Industries Department, Selvakumar, and the CEO of KIADB were all complicit in the illegal activities. He said Rs 300 to 400 crores was misappropriated from the KIADB. He claimed that the CA plots were supposed to be allocated through an auction or at a rate three times higher, which would have brought a profit of Rs 300 to 400 crores to the KIADB.
Instead, CA plots were allegedly allocated directly to industrialists without following the proper procedures, resulting in massive corruption. Kallahalli urged the state government to take the matter seriously and demanded that the case be handed over to the CBI or an independent investigative agency for a thorough probe.
Given the perceived lapses in the CID investigation, there have been widespread calls for a Central Bureau of Investigation (CBI) probe. Despite the government’s previous reluctance to address the scam, the ED’s involvement marks a significant escalation in the case. The public awaits further revelations as the investigation progresses.
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