Karnataka CM Siddaramaiah under fire as son's firm gets plum government contract

Bengaluru: Karnataka Chief Minister Siddaramaiah has come under fire over his younger son being permitted to set up lab and diagnostic facility at government-run hospitals in alleged violation code of conduct for Ministers.

The lab will be run in partnership with Matrix Imaging Solutions India Private Limited, in which Siddaramiahs son Yathindra Siddaramaiah is a director.

Unfazed by the criticism, the Chief minister today denied any wrongdoing, saying, "He (his son) is a doctor by profession. His friend is having a company. He is one of the directors. They had participated in the tender. They are the lowest bidder. It is for service to the people, there is no money involved from the government."

The issue snowballed into a controversy as Leader of Opposition BJP in the Legislative Council K S Eshwarappa talking to reporters in Udupi demanded a probe into the matter.

"Just because he is Chief Ministers son there is nothing that he should not work. But, whoever it is, the tender has to be as per law and rules," Eshwarappa said.

"Chief Minister has already said that it is as per rules. So let there be investigation on this", he said, in an apparent poser why the government should shy away from probe.

Chirthahalli Mudlagiriyappa Rajeshgowda and Yathindra are directors of Matrix Imaging Solutions India Private Limited registered in 2009.

The code of conduct for Ministers (both Union and state) says that "after taking office, and so long as he remains in office, the Minister shall ensure that the members of his family do not start, or participate in, business concerns, engaged in supplying goods or services to that government (excepting in the usual course of trade or business and at standard or market rates) or dependent primarily on grant of licenses, permits, quotas, leases, etc from that government."

The code, posted on government website, also states that the Minister shall report the matter to the Prime Minister, or the Chief Minister as the case may be, if any member of his family sets up, or joins in the conduct and management of, any other business.

The lab will have biochemistry, pathology, CT scan, MRI scans, X-ray and ultrasound facilities for patients.

A post on the Facebook page that updates about the state government programmes, dated April 7 said "The lab is being run in partnership with a private lab, Matrix Solutions. Being run under public-private partnership, the private company will provide the equipment, while the government would give space in the hospital to run the service."

It also claims the services provided at the centre will be cheaper.