Karnataka businessman used a smartwatch camera to record ‘bribe’ for BJP legislator’s son

According to Karnataka’s Lokayukta police, the KSDL chairman’s son, who is a Karnataka Administrative Services official and CFO of Bengaluru Water Supply and Sewerage Board (BWSSB), was caught on March 2 while allegedly accepting Rs 40 lakh from the businessman.

While Prashant has been arrested, the Lokayukta police are yet to arrest Virupakshappa, who has been named as the prime accused in the bribery case. Sources said the case emerged on account of the decision by the businessman Kashyap to file a corruption complaint.

“A total of Rs. 2,02,00,000/- was seized from the private office of Shri Prashant Madal on Crescent Road and Rs 6,10,30,000/- were seized from the residence of Shri Madal Virupakshappa,” the Lokayukta police stated after searches on March 2 and 3.

KSDL chairman Virupakshappa is a close associate of former Karnataka CM B S Yediyurappa. “They are saying he is my close associate. Everyone is dear to me,” Yediyurappa said about the case against Virupakshappa who is the Channagiri MLA.

According to the FIR, the businessman Kashyap and his associate S Murthy negotiated for payment of Rs 81 lakh as a bribe — with Rs 40 lakh as initial payment. This was for a contract worth around Rs 4.8 crore following a tender called in January 2023, sources said.

The two businessmen were allegedly being forced to pay the bribe amount before the schedule for delivery of the raw materials was cleared by KSDL. It became a matter of concern on whether KSDL would abide by the purchase contract once elections are held in Karnataka soon and there is a possible change at the helm of the state-run firm, sources said.

They said that Kashyap used a Tecno View smart-watch to record his conversations with the son of the chairman of KSDL to whom he was allegedly referred by Virupakshappa in February.

A spy camera on a smart-watch was used since Prashant and his associates had an elaborate security system in place to prevent recordings at his office which required businessmen to leave all personal devices including mobile phones outside during negotiations, sources said. There were no communications allowed through WhatsApp and messaging apps, they said.

The two firms, Chemixil Corporation and Delicia Corporation, who have been suppliers of raw materials to KSDL for long, were awarded the contract to supply 5,100 kg of Guaiacwood oil at the rate of Rs 4349 per kg and 29,520 kg of Abbalide at the rate of Rs 845 per kg — around 24 and 12 percent of profit respectively for the companies, sources said.

In addition, sources said, the Lokayukta police investigation has found that KSDL also awarded contracts for the supply of other raw materials like DFA soap noodles at over 50 per cent profit margins to firms run by friends of Prashant with no trade experience who in turn reportedly subcontracted the supply of raw materials.

Three companies, including Karnataka Aromas Company, were being awarded all tenders, sources said. Two field employees of Karnataka Aromas Company — Albert Nicola and Gangadhar — are among six persons named in the bribery case registered by the Lokayukta police against the KSDL chairman and his son.

A portion of the Rs 2.02 crore in cash found in the office of Prashant on March 2 is linked to bribes allegedly paid by Karnataka Aromas Company officials, sources said. The unaccounted cash found in the office of the BJP MLA’s son is allegedly linked to illegal payments with respect to KSDL contracts, sources said. The source of an amount of Rs 6.20 crore found in the home of the MLA has not been ascertained and the Lokayukta police are hoping for answers from the MLA.

In the case of the recent supply of raw materials like DFA soap noodles, KSDL had contracted the procurement at a rate of Rs 1.40 lakh when the price fixed by the Fragrances and Flavors Association of India is Rs 90,000.

Associates of the BJP MLA have reportedly claimed to the police that money seized from their leader’s home was part of revenues that were obtained from the sale of arecanut from hundreds of acres of agricultural land owned by him in his constituency. Police are verifying these claims.