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A single-judge bench of the Karnataka High Court on Monday dismissed the bail plea of BJP MLA Madal Virupakshappa, 72, in a bribery case filed earlier this month by the Karnataka Lokayukta police. The BJP MLA was arrested by the Lokayukta police a few hours after the bail plea was dismissed.
The case was filed by the Lokayukta police after the MLA’s son Prashant Madal was caught red-handed on March 2 while allegedly receiving a bribe of Rs 40 lakh from a businessman for awarding a tender for the supply of raw materials to the state-run Karnataka Soaps and Detergents Ltd (KSDL), which was then headed by Virupakshappa.
The Lokayukta police told the high court that the KSDL managing director had given a statement which revealed the active participation of Prashant in the tender process at KSDL at the instance of Virupakshappa despite Prashant not being connected to the KSDL and being an employee of another government department.
“If the company pays crores of rupees as commission or bribe, one cannot expect good quality raw materials to be supplied and the very process followed by the tender accepting committee of accepting the lowest price and good quality of raw materials will be frustrated,” Justice K Natarajan said in his order.
There was no question of Prashant approaching the complainant with a demand for a bribe if there had been no demand from Virupakshappa, the then KSDL chairman, the court said.
The single-judge bench of the high court had on March 7 granted anticipatory bail to Virupakshappa on the grounds that there was no mention of the demand or acceptance of bribe by the MLA in the police complaint.
On Monday, the bail plea was dismissed after the Lokayukta police produced material to show Virupakshappa’s direct involvement in the bribery and corruption at KSDL, which he headed till March 3. The Lokayukta police also told the court that Virupakshappa needs to be interrogated in police custody since he was evasive in his replies during regular questioning.
The MLA’s bail plea was dismissed even as a hearing began in the Supreme Court on an appeal filed by the Lokayukta police against the anticipatory bail order.
Businessman Shreyas Kashyap, who is a partner in a firm named Chemixil Corporation, allegedly told the Lokayukta police in February this year that he was asked by Virupakshappa to pay a bribe of Rs 1.2 crore to be cleared for a contract to supply 5,100 kg of Guaiacwood oil, and 29,520 kg of Abbalide, as raw materials to KSDL.
Kashyap allegedly struck a deal for payment of a bribe of Rs 81 lakh for the supply contracts by Chemixil Corporation and Delicia Chemicals, with an initial payment of Rs 40 lakh to Prashant. The negotiations for the bribe payments with Prashant were reportedly recorded on a smartwatch camera by the businessman to prove that it was a genuine case of corruption.
The Lokayukta police laid a trap on the basis of the businessman’s complaint and Prashant, who is a Karnataka Administrative Services official and the chief accounts officer of the Bengaluru Water Supply and Sewerage Board, was allegedly caught red-handed by the police on March 2 while accepting an initial bribe amount of Rs 40 lakh.
A total amount of Rs 2.02 crore of bribes from KSDL suppliers was found in the possession of Prashant when he was caught at his private office in central Bengaluru while an amount of Rs 6.10 crore was seized from the residence of Virupakshappa, a close associate of former Karnataka BJP CM B S Yediyurappa.
The Lokayukta police investigation has found that KSDL awarded contracts for the supply of raw materials at over 50 per cent profit margins to firms run by friends of Prashant.
The Lokayukta police have also accused officials of a firm identified as Karnataka Aromas Ltd of paying bribes to the tune of Rs 90 to be given supply contracts by KSDL. Two field employees of Karnataka Aromas Company, Albert Nicola and Gangadhar, are among the six people named in the bribery case against Virupakshappa and Prashant.
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