KSDL bribery case: 3 directors of firm which supplied raw materials under cop scanner

Prashant, a Karnataka Administrative Service officer and chief financial officer at the Bengaluru Water Supply and Sewerage Board, was caught red-handed when he was receiving a bribe of Rs 40 lakh from a partner of Chemixil Corporation, which too supplies raw materials to KSDL. The Lokayukta police also found Rs 2.02 crore of cash in Prashant’s office.

According to the police, businessman Shreyas Kashyap and his associate T A S Murthy negotiated for a payment of Rs 81 lakh as a bribe — with Rs 40 lakh as initial payment — for a contract worth around Rs 4.8 crore following a tender called in January 2023. Prashant had initially demanded Rs 1.2 crore as a bribe from the firms. The negotiations were recorded on a smart watch worn by one of the businessmen.

According to the Lokayukta police, two employees of Karnataka Aromas — Albert Nicola and Gangadhar — were arrested for allegedly paying a bribe of nearly Rs 90 lakh to Prashant. Police sources said the cash found in Prashant’s office was a collection of bribes taken to award KSDL contracts.

The police are now looking at the role of the three directors of Karnataka Chemical Industries and Karnataka Aromas — Kailash Raj, Vinay Raj and Chetan M. The trio has sought anticipatory bail from a local court.

Incidentally, BJP MLA Madal Virupakshappa quit as the chairman of KSDL after he was named as the first accused in the bribery scandal. The MLA, who has been absconding since the case was registered on March 2, was granted anticipatory bail Tuesday by the Karnataka High Court.

The Karnataka Chemical Industries and Karnataka Aromas had come under the scanner of the state industries department two years ago after the KSDL employees’ union complained of alleged irregularities to the tune of Rs 20 crore in transactions with the firms. An internal inquiry had, however, found no wrongdoing.

After conducting the searches on March 2 and 3, the Lokayukta police in a statement said, “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.”

Sources said a few companies, including Karnataka Aromas Company, which were run by Prashant’s friends, were being awarded several tenders of KSDL.

While Prashant is a close associate of members of the family of a senior BJP leader, Madal Virupakshappa is a close associate of the former BJP chief minister B S Yediyurappa.