Days after a TV news channel alleged Karnataka chief minister Yediyurappa’s family was involved in corruption, it has emerged that some companies that have his grandson as director received money from shell companies based in Kolkata.
According to the documents available with the registrar of companies (RoC), Belgravia Enterprises Pvt Ltd and VSS Estates Pvt Ltd received ₹5.35 crore from seven shell companies with Kolkata addresses, The Sunday Express reported. Shashidhar Mardi, the grandson of Yediyurappa, is a director in both the companies.
All the seven companies in Kolkata have the same addresses, according to RoC filings. The Sunday Express, however, reported that no company was functioning from that address.
The money was intended for getting a company named RCCL the clearance for a ₹660-crore government housing project in Bengaluru, Power TV had reported last month.
In the four months from March to June, the shell companies first transferred ₹5.35 crore to Belgravia, which then transferred the amounts to VSS Estates, an examination of bank statements and RoC documents has revealed.
The shell companies are: Remac Distributors Pvt Ltd, Sakambari Merchants Pvt Ltd, Strategic Vincom Private Ltd, Jagdamba Commosales Pvt Ltd, Gannayak Commodities, Navtech Creation Pvt Ltd and Ragharana Sales Pvt Ltd.
Mardi claimed the amount was a working loan for a project. “They are working loans for a project. We have provided all documentation for it,” he said. Mardi said the allegations against him and the companies in which he is a director are being made with “ill intentions”. “The amount eventually went to fixed deposits because all the funds cannot be used immediately for a project. We will access it when required. It was to be used in a JV project,” Mardi told The Sunday Express.
He said the sting operation done by the TV channel on the alleged corruption was aimed at defaming Yediyurappa and his family. Mardi also said he has no links to the ₹660-crore project. The contract for the housing scheme was awarded to RCCL during the Congress-JD(S) regime in the state in April 209. The work order for the project, however, has not yet been issued. The TV channel alleged bribes were paid to get clearance for the project.