REGISTERED No D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 215] NEW DELHI, MONDAY, MAY 23, 1977 JYAISTHA 2, 1899
Separate paging is given to this Part in order that it may be filed
as a separate compilation
MINISTRY OF HOME AFFAIRS
(Department of Personnel and Administrative Reforms)
NOTIFICATION
New Delhi, the 23th May, 1977
S.O 365 (E)—Whereas the Central Government is of opinion that it is necessary to appoint a Commission of Inquiry for the purpose of making an inquiry into a definite matter of public importance namely, charges of corruption, neso- lism, favouritism or misuse of Governmental power- against the Chief Minister and certain other Ministers of the State of Karnataka, hereinafter specified,
Now, therefore, in exercise of the powers conferred by section 3 of the Com- missions of Inquiry Act, 3952 (60 of 1952), the Central Government hereby appoints a Commission of Inquiry consisting of a simile member, namely, Shri A. N. Grover, retired Judge of the Supreme Court of India.
2. The terms of reference of the Commission shall be as follows —
(a) to inquire into the following allegations, namely:-
(i) such of the allegations contained In the memorandum dated llth April, 1977 received from some Members of the Karnataka State Legis- lature and addressed to the Prime Minister as are specified in Annexure I,
(1977)
XO-g THE GAZETTE OF INDIA EXTRAORDINARY PART II—SBC. 3(il)(n) such of the allegations contained In the memorandum aforesaid as are specified in Annexure II, but excluding any matter covered by the notiilcation of the Government of Knmataka in the Chief Secretariat No DPAR 7 GAM 77, dated the 18th May, 1977;
(b) to inquire Into any Irregularity, impropriety or contravention of law other than those specilled in the said notification of the Government of the State of Karnataka, on the part of any person in relation to any matter referred to In the allegations aforesaid;
(c) to Inquire Into any other matter which arises from, or Is connected with or Incidental to, any act, omission or transaction referred to in the allegations aforesaid.
Explanation—In the Annexures to this notification, "ChieE Minister" means Shrl DevaraJ Urs, the Chief Minister of the State of Karnataka
3. The headquarters of the Commission will be at New Delhi.
4 The Commission will complete Its Inquiries and report to the Central Gov- ernment on or before the 1st day of December, 1977.
5. And whereas the Central Government Is of opinion having regard to the nature of the Inquiry to be made by the Commission and other circumstances of the case, that all the provisions of sub-section (2), sub-section (3), sub-section (4) and sub-section (5), of section 5 of the Commissions of Inquiry Act, 1952 (BO of 1952) should be made applicable to the Commission, the Central Govern- ment herebv directs, In exerc'se of the powers conferred by sub-section (1) of the said section 5, that all the provisions of the said sub-sections (2), (:i), (4) and (5) of that section shall apply to the Commission
ANNEXURE I
1 Whether the Chief Minister practised favouritism and nepotism by appoint- ing his own brother, Shri D Kemparai Urs. as a Director of the Karnaf.ika State Film Industries Development Corporation in place of Shri R J Rpbollo, Chief Secretary to the Government, in 1974, and later as Dlreclor-in-charge with the powers to exercise all the powers of the Managing Director.
•> Whether the Chief Minister had directed auction of excise shops out of turn In five districts on the eve of the recent Lok Sabha Elections In the month of February 11)77 with corrupt motives although the auctions were due In the month of MPV, 1977. and whether this was done with the object of collecting funds for the Elections.
3 Whether the Chief Minister had released Rs 50 00 lakhs +o buy "Under- s t a n d^ Science" from IB H, over-ruling the decision of the Sub-Committee constituted for the purpose under the Chairmanship of the Chief Minister and also over-ruling the orders of the concerned Minister.
4 Whether the Chief Minister was Kuilty of shielding corrupt, officers, In particular two officers of the Public Works Department, namely, Shrl Seshacirl Rao Assistant Engineer, and Shri Shivanna, a Clerk, against whom prosecution orders were passed by the Government on the basis of the recommendations of the Vigilance Commission. Whether the Chief Minister on his own revised the order and withdrew the prosecution for any consideration.
5 Whether Shri Hanumantha Reddy, Superintending Engineer, wns promoted as Chief Engineer by the Chief Minister against the recommendation of the ViRllance Commission that he should bo demoted and certain amounts should be recovered from him and whether the Chief Minister BITO "yer-rviH the orders of the concerned Minister and whether such act)on of the Chief Minister was for any consideration.
6 Whether the following payments were made to M/s- Shankaranarnyana
Construct'on Co. —
(1) An ex-gratla payment of Rs. 6.37 lakhs in Malaprabha Project;
mi excess payment to the tune of Rs 12.00 lakhs to Ghataprabba Prol#rt
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i_7. Whether any misappropriation of funds and fabrication of accounts of the Social Welfare Department was made with the connivance of the then Minister Suri N. Eacnalh to t'le extent of Rs. 30.00 lakhs and whether any fraud wus practised in connection with the said matter.
8. Whether appointment was made of fictitious persons as dealers In sandal soap by Mysore Sales International under the ordeis of the Chief Minister and the Mi/uster for Industry and payment was made of huge amounts Ly way oi! commission.
9. Whether gross misuse of power and position was made by Shri H. M Channa Bassapjjj, formerly Minister-ln-chargo of Public Works Department ai,ri Electri- city (now Minister of Health) in converting the residential site which he got allotted to him bv the Trust Board into a commercial site and starting a company witJi ins lamily memoers as directors
10. Whether any favouritism was shown or whether there was eny corrup- tion in the purchase of new tyres and in bo.ly building contract for the new chassis by Karnataka State Road Transpoit Corporation under the undue influence of tne Chief Minister and the Minister for Transport Shri Aziz Sait.
11 Whether there was anv nepotism and favouritism and misuse of power by the Chief Minister and the Minister of Transport in the matttcr ot nationalisation of contract carnages and wiliuliy beneiitting ceitam parties with whom the Chief Ministers second son-in-law was a partner.
12. Whether any favouritism was shown in the nomination of Shri K. V. Rao as a member of tne Karnataka State Road Transport Corporation Board against the provisions of the Act.
13. Whether an undue favour was shown to M/s. Balaji Engineering Construction Company by accepting the tender for construction of houses under Housing and Urban Development Corporation's Low Income Group Scheme in Dumlur Lay-out by the Bangaiore Development Authority, which is under the administrative control of the Chief Minister
14 Whether allotment of 20 acres of land was made to the three sons of the Finance Minister, Shri M x Ghorpade, in contravention of land grant rules and the provisions of the Land Reforms Act and the Land Revenue Acts.
16. Whether anv misuse of power was committed, or any corruption committed, by Shri D K Naikar, Minister fpr Municipal Administration, with legtud io tne grant of land to Boroica Textile Mills in Hubh-Darwar Corporation Area
ANNEXURE II
Whether tho Chief Minister or any other Minister of the State of Karnataka was guilty of corruption, nepotism, favouritism or misuse of governmental power in connection with all or any of the following matters, namely.-—
(1) Grant of 20 acres of Government land, reserved for grazing of Cattle in Bommanahalli, Nelamangala Taluk, Bangalore District, to the son- in-law of the Chief Minister, Shri M. D, Nataraj, in violation of th" provisions of the Land Revenue Code and disregarding the claims of local Scheduled Caste applicants,
(2) Allotment of 4 large valuable house sites in the most posh locfihty of Bangalore, Rai Mahal Vilas Extension, to Shri Devaraj Urs and his family members in supersession of the rightful claims of other ap- plicants;
(3) Undue favours shown to Messrs Nirmala Engineering Construction Company, by releasing Government funds inspite of the fact thai the concerned Minister had taken a decision to prosecute the firm on the basis of the recommendations of the Vigilance Commission.
(4) Excess payment of Rs 98 80 lakhs to Messrs Balajl Engineering Com- pany, In Hemavathi Project, In contravention of ths terms ot th" •ontract with a view to favouring the contractor;
I98O THE GAZETTE OF INDIA EXTRAORDINARY PAHT II—SEC 8(ii)undue favour shown to Messrs Nechipadam Construction Company in Remavathi Project, by accepting tut a^nest tender with an Intent • to benent the contrautois ana involving excess payment to the extent of Rs. 3.5 lakhs,
(ti> Excess payment of Rs. 1 crore to Messrs TICIL Contractors, In Kail Hydel Project, for the benent of vne Contractors;
(7) whether about 5,000 tons of rice, purchased by the Government of Karnatakd from the Tamil Nadu Government on government-to- guveiiimt-'at oasis, wus allowed to be mameted by a pii.auc ^*i.*y, bhn ±1 R, Athuq Anmed, without the knowledge 0! the Food Dep. it- ment, instead of tne Mysore £>ute Co-uyerative Marketing Federation as was earlier agreed, with the sole intent of beneilttinfi the private party;
(8) Undue favour shown to a fictitious cooperative society in regard to conversion of 270 acres of agricultural land called DIN SHAW ESTATE into non-dgriculiurdl purpose in violation of the mandatory provi- sions of the Land Reforms Act end the Land Revenue Act;
(9) Whether undue favour wag shown to one Ghanshyam in the sale of 2:>U0 tons 01 Bajra at the rate of Rs. 73.50P. per quintal without u ui ig for tenders and allowing Shu Gudnsnyam to seJ the Bajra In the State of Maharashtra at the rate of Rs. 125.00 per quintal uuriiiy me time of drought in Karnaiaka.
(10) Whether undue favour wag shown, or concession was made, to M/s. Karekar and Sundaram, Architects, m regard to the preparation of designs for remodelling the K. Ii. Market In supersession of the order of the concerned Mimstei
(11) Whether undue favour was shown or concession was made, to M /r Shah Construction Co, contractors, In Upper Krishna Project at Alamatti
(12) Whether undue favour wag shown to M/s. Krishna Flour Mills " in granting valuable land in Bangalore City, which land was meant for children's park, at a nominal rent by over-ruling the orders of the concerned Minister
(18) Whether there was any misappropriation of funds of the Karnataka State Film Industries Development Corporation to the tune of Rs 10 00 lakhs, when the Chief Minister himself was the Chairman of that Corporation and whether the business of the Corporation wai conducted with intent to defraud tbat Corporation, its membeia, creditors or any other person or otherwise for a fraudulent or un- lawful purpose.
(14) Whether any undue favour was shown to M/s. Foomima Electronics, Bangalore, in the purchase of electronic equipment (inter-com) by superseding the recommendation of the Head of the Department and orders of the concerned Minister.
(15) Whether any misappropriation of the funds of the Karnataka State Co-operative Marketing Federation to the extent of several crores of rupees was mala by Shn H S. Snkantiah, Minister of State for Hqme, when he wa? the President of that Federation and whether the business of the Federation was conducted with Intent to defraud that Federation, its members, creditors or any other person or other- wise for a fraudulent or unlawful purpose.
(16) Whether anv undue favour was shown by Shri Satya Pal by th" Minister of Transport, Shri MohamPd Alt, by accepting the once re- jected tender of Shri Satya Pal in leasing out ite building for c 1 teen in Karnataka State Road Transport Corporation Bus Stand, Mysore, and whether any undue favour was shown by the same Minister to Shri Satya Pal's son Shri Prem Kumar, in leasing out its ie iring rooms of the Karnataka State Road Transport Corporation in Myaora.
1Q8±
-*• (17) Whether any undue favour was shown to four firms, namely, All-India Agencies, Vidyut Engineering Co, Tnahul Enterprises and Mysore Woods, in purchasing furniture valued at Rs. 29 00 lakhs in lb73-74 under I P. Project by the Minister for Health, Shn H Siddavoerappa.
(18) Whether any Undue favour was shown by the Minister of State for Small-scale Industries, Shri Koulajgi in 1974, m the l sue of Essen- tiality Ceihflcata to paitiea many of which weie fictitious and bogus.
(19) Whether undue favour was shown by the Chief Minuter and the Minister for Transport, Shri Aziz Sait, m 1973-74, to M/s. Fargo in buying 150 chassis against the advice of the Chief Mechanical Engineer of the Karnataka State Road Transport Corporation
(20) Whether any undue favour was shown by the Minister of Industries, Shri S M Krishna, m allotting of paper, cement and -steel of the S<.ate-owned industries to non-tra iitional dealers/agents including his kith and kin.
(21) Whether an excess payment of Rs. 30 00 lakhs was made to M/3. Shankaranarayan Construction Company Hi r^Knrd to the construction of combined Board Administrative Building Complex at Bangalore over and above the contract rates.
(22) Whether any excess payment was ma-le to M/s Balaii Engineering Company to the tune of Rs 80 00 lakhs in Harangi Project with "n intent to favour the conti actor,
(23) Whether Shri K. H, Patjl, the then Minister for Agriculture and Forest. was guilty of any misuse of power or undue favouritism in relation to Hukkeri Textile Mills or Gadag^ Co-operative Textitle Mills, or both.
(24) Whether any undue favour was shovvn or any corruption committed by Shn Chikkc Gowda, the then Minister for Animal Husbandry and Agriculture in reation to the payment of a sum of Rs 3 00 lakhg to M/s Navarasa Fertilisers.
(25) Whethsr there was any misuse of power an
[No. 375/16/77-AVD. III.]
R. K. TRIVEDI, Secy.
TQS2 THE GAZETTE OF INDIA EXTRAORDINARY PART tl—SEC. 3(11)1983
jgg^, THE GAZETTE OF INDIA EXTRAORDINARY PART II—SEC. S'ii,"1985
s o g^ THE GAZETTE OF INDIA EpCTJUVOiUWNARY PABT JbrSp:. $(U)PRLNTRD BY THE GENERAL MANAOEH, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NBW D M ja AND FUW,BHED BV TH£ CONWOUJUl 4" JTIBUCAHONS, DBUBI, 1 9 77