Karnataka housing scam: Case filed against Yeddy

Karnataka Lokayukta Police filed a case against former chief minister BS Yeddyurappa on Saturday in connection with a Karnataka Housing Board allotment scam.

Updated: Feb 25, 2012, 14:46 PM IST

Bangalore: Karnataka Lokayukta Police filed a case against former chief minister BS Yeddyurappa on Saturday in connection with a Karnataka Housing Board allotment scam.

A case of cheating and criminal conspiracy has been registered against him under IPC Sections 420, 120 (b) and 13 (1) (d), reports said.

The scam is worth an alleged Rs 500 crores and involves former state housing minister Krisshanaiah Setty.

According to reports the Karnataka Housing Board (KHB) paid exorbitant rates to purchase 959 acres of land in Sidlaghatta taluk (Chikkaballapur District) for residential use.

The KHB bought land from S N Srinivas Setty, brother of Krisshanaiah Setty, at Rs 50 lakh per acre, while the actual cost was much less.

The then state government rejected the opposition`s CBI probe demand, maintaining that land acquisition had been stopped from March 2009.

The then chief minister B S Yeddyurappa said: "Though the proposal was for 959 acres, only 30.31 acres were purchased by paying Rs 15.39 crore. I found that it wasn`t necessary to purchase so much land without a proper plan, hence stopped land acquisition in March itself. We will not acquire land further.”

ANI