Money laundering, tax evasion open in Karnataka, says Bhardwaj

BANGALORE - Money laundering and tax evasion take place openly in Karnataka, Governor H.R. Bhardwaj said Wednesday, a day after the Congress urged him to sack mining barons Reddy brothers from the ministry for alleged income tax fraud.

“Money laundering is happening openly. Tax evasion is also happening,” he told reporters here, reacting to the Congress demand for dismissal of Tourism Minister G. Janardhana Reddy, his brother Revenue Minister G. Karunakara Reddy and their associate Health Minister B. Sriramulu.

The Congress had submitted a memorandum to Bhardwaj Tuesday alleging that the Obulapuram Mining Company of Reddy brothers and Sriramlu had evaded income tax of around Rs.86 crore.

The company is said to have signed an agreement with a one-dollar Singapore company for selling iron ore at a price much below market price and later exported it at a higher price to evade income tax payment.

Janardhana Reddy had admitted that he was a director of the Singapore company.

The governor’s permission has also been sought by two Bangalore advocates to prosecute Chief Minister B.S. Yeddyurappa and his two sons over their land deals.

Bhardwaj said the documents submitted by the two lawyers run into “nearly 2,000 pages” which he had yet to study.

The advocates, Sirajin Bhasha and K.L. Balraj, sought the governor’s permission Tuesday by submitting a 150-page complaint with over 1,500 supporting documents against Yeddyurappa, his two sons and several cabinet ministers.

On his address to the joint sitting of the two houses of the legislature Jan 6, Bhardwaj said it was a constitutional duty and he would perform it.

Asked whether he would read out the address as prepared by the government or would make changes, Bhardwaj said: “Let it come. I will let you know my views after that.”

The governor and the Bharatiya Janata Party government in the state have been engaged in a verbal duel for several months now.

While Bhardwaj keeps repeating he was not happy at the way government was handling various issues, BJP leaders accuse him of acting like a “Congress agent”.

Bhardwaj, a long time Congressman, was central law minister prior to his appointment as Karnataka Governor.