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JSW Steel refutes criminal conspiracy charges

Last Updated: Thursday, October 18, 2012 - 23:04

Bangalore: Belgaum-based JSW Steel Ltd on Thursday refuted allegations that it had entered into a criminal conspiracy with some persons and caused a loss of Rs 890 crore to Karnataka government as stated in the chargesheet filed by CBI in connection with a graft case involving former Chief Minister B S Yeddyurappa and others.

"(There is) No basis for attributing criminal conspiracy to a continuing transaction, approved by Karnataka Government in 1996 and is known to the successive Governments for over a decade", the company said in a statement here, two days after the CBI filed a chargesheet naming it as one of the accused.

"Tarnishing the image and accusing JSW Steel for causing an assumed loss of Rs 890 crores, when government of Karnataka has not fulfilled its promises, is unfortunate. The company would present its defense before the competent court. The company has highest regard for the judiciary and believes justice will be done", it said.

The CBI in its chargesheet has alleged that JSW Steel entered into criminal conspiracy with certain persons including the then Chief Minister of Karnataka during 2006-10 for not insisting on recovery of Rs 890 crores from the company which is the "loss" caused to Mysore Minerals Limited, a state PSU.

"The company wishes to notify to all its stakeholders that the allegations are without any basis as till date MML or any other authority including Karnataka Lokayukta have never demanded or made allegation against the company regarding alleged loss amounting to Rs. 890 crores while the joint venture with the said MML is in operation for over 10 years spanning the tenure of successive governments in state of Karnataka," the statement said.

"On the contrary the company has filed a law suit against MML for recovery of principal claim of Rs 216 crores illegally recovered from the company", it said.

The chargesheet had said Rs 20 crore paid as donation to a trust run by Yeddyurappa`s kin by JSW`s sister firm and also purchase of piece of land at an `exorbitant` rate of Rs 20 crore were a quid-pro-quo for not insisting on recovery of Rs 890 crore.


First Published: Thursday, October 18, 2012 - 23:04
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