COMMENTARY

Karnataka: Politics of Money, Mining and Land

V Shankar

It is only a beginning and not an end. The plight of BJP in Karnataka is not over with the resignation of Yeddy and with the election of a new chief minister, it has only assumed a new dimension of a rather complex nature. Factional infighting has undergone a process of realignment. Money power and the greed for political power have once again assumed its decisive role in defining power equations inside the party. BJP has emerged as a party of scamsters and opportunists to the core.
The Lokayukta report on illegal mining in Karnataka, scripted by Santosh Hegde and assisted by Dr. U V Singh, Chief Conservator of Forests and his team, spelled doom for Yeddyurappa, the most corrupt Chief Minister Karnataka had ever seen.  
The entire country witnessed the corrupt Yeddy dictating terms to the BJP and the so-called ‘value based’ BJP chose to remain content with his dictates for the ‘greed’ of retaining the only state government in the south by hook or crook. The central leaders of BJP did nothing but put a stamp of approval to the Yeddy-scripted end to the drama of resignation. Neither could they expedite his resignation nor could they change the name of the proposed Chief Minister that was decided by Yeddy.
The central leadership of BJP resorting to the method of ‘secret ballot’ to elect the chief ministerial candidate in inner party fora is not out of their love for democracy but because of their loosening grip over the Karnataka party and surrender to Yeddy.
The entire central BJP leadership was put on tenterhooks by Yeddyurappa for more than four days when he refused to resign. Their situation was even more pathetic when the first date of the meeting of legislative group to elect a new chief minister had to be postponed to 3 August because of his refusal to submit resignation. It seems that Yeddy has grown taller in terms of his money power since he took over as chief minister and was all set to challenge everyone.
In the context of the Lokayukta report that indicted him, Yeddy wanted a new chief minister of his own choice who would protect him either by rejecting the report or by making necessary modifications to the actions proposed by the Lokayukta.

As per Lokayukta estimates, around 2.98 crore Metric Tonnes (MT) of illicit iron ore worth Rs.12,228 crores has been exported from Karnataka. More than 83 exports of the quantity of 17.58 lakh MT of iron ore has been exported after the ban imposed from 28/07/2010 on issue of permits for transporting iron ore. Illegal export of iron ore has gathered momentum after the seizure of more than 8 lakh tonnes of illegal ore at Bilikere Port in Feb. 2010. The momentum increased further after the release of first part of the report on illegal mining by Lokayukta in mid-2010. The direct loss to the state exchequer is estimated to be Rs.16,085 crores. Most of the illegal mining business is run by Reddy Brothers and they are estimated to have amassed a wealth of over Rs.30,000 crores over a period of time. More than 784 officials at various levels and from various departments are estimated to have received more than 2.5 crores as bribe in a short span of time. The rates of bribe for each official right from Port Director and Superintendent of Police to constables and clerks are also fixed.

It is not just the choice of new chief minister but an assurance by the BJP, as a party, to defend Yeddyurappa and the Bellary Brothers against allegations of corruption, which appears to have formed the basis of the deal behind the screen. This has become amply clear by the induction of V Somanna, a close associate of Yeddyurappa, who is accused by the Lokayukta report, into the new ministry. This is further reinforced by the fact that BJP president Nitin Gadkari is the chief guest this year in place of Sushma Swaraj, in the annual Varamahalakshmi festival being hosted by the Reddy Brothers in Bellary!
The Lokayukta report has not minced any words in accusing the Reddy brothers of running a mafiadom of illegal mining in Bellary. Yet, the BJP is not ashamed of associating with them and this is a sufficient proof that the BJP in Karnataka is being run by none other than land and mining mafia. 
BJP’s opposition to corruption is only eyewash as many of its leaders want the most corrupt Bellary Brothers to be inducted into the ministry. Jagadish Shettar, main leader of the rival group to Yeddy is very candid in advocating induction of the Bellary Brothers into the ministry at the earliest. 

The Lokayukta report has meticulously collected data running into more than 25000 pages. It has established through hard facts that Yeddyurappa’s sons and in-laws have received Rs.20 crores from Jindals, one of the big corporate companies in steel industry, towards the sale of one acre of land worthy of less than 1.25 crores in Bangalore. Another 10 crores were donated to a trust run by Yeddyurappa’s sons called ‘Prerana Education Trust’ by the same company in the same route. Remittance of this money was done by Jindals not directly but through another company called South West Mining Company Ltd. This transaction, according to Lokayukta, is nothing but a bribe extended as a quid-pro-quo for sending a favourable report by the state government to the central government on some clarification for allotting more than 540 acres of land for mining by three companies related to Jindals.

Yeddyurappa also allotted lands in Bangalore to his sons by denotifying lands out of the way, using his office. Recently, another FIR has been filed by Lokayukta police, under the direction of Lokayukta court, against Yeddyurappa on some scam involving Upper Bhadra Irrigation Project. He is also facing charges of illegal denotification of many other parcels of lands. HD.Kumaraswamy of Janata Dal (Secular) has accused Yeddyurappa of one more scam involving Ratna Cement Company of Belgaum. Many more scams are expected to be unearthed soon.
Floodgates for illegal mining in the state were opened, through a GO in 2003, by de-reservation of more than 11,620 sq.km of land meant for mining by the government and public sector. Another 6832.48 hectares were notified for surrender. This act of the state government paved way for the exploitation of public mineral wealth by private parties. Privatisation of the mining sector is the main reason for the alarming growth of illegal mining activities in the state. This can be undone only through nationalization of mineral wealth, particularly iron ore mining in the state.
This also created a conducive atmosphere for the growth of crony capitalism represented by the land and mining mafia. In order to strengthen its position in the economy, crony capitalism gradually started tightening its grip and increasing its assertion in the political arena. In this process, the entire administration at all levels was destroyed, parallel systems were put in place and thus, it gave birth to the ‘Republic of Bellary’, in the words of Lokayukta.

Recovering illegal wealth to the state exchequer is only a damage control exercise. Action on corrupt ministers and officials is only a mirage under the BJP dispensation. Only Yeddyurappa has been relieved from chief ministership, and even he has not been arrested yet. The Bellary Brothers, who are capable of erasing all evidence, are roaming scot free. None of the 800 officers facing corruption charges by Lokayukta has been arrested. The BJP government is likely to delay action until all evidence is erased by the mighty and the powerful.