The Karnataka Soaps and Detergents Limited (KSDL) employees’ union has alleged that tender amounts were being inflated to generate profits for contractors in return for kickbacks. This comes days after the Karnataka Lokayukta booked BJP MLA and former chairman of KSDL Madal Virupakshappa over charges of bribery.
The president of the employees’ union, GR Shivashankar, addressed a press conference on Saturday, March 4, during which he alleged that KSDL procured raw materials from companies by paying thrice the market price. He stated that over 15 raw materials procured by KSDL were being bought at higher prices, causing losses to the firm, The Indian Express reported. He added that he has written to the Karnataka Lokayukta, which is investigating the bribery charges against Madal Virupakshappa and his son Prashant.
Highlighting the contract to procure Sandranol (a perfumery component) for 2023-24, Shivashankar said that KSDL would be paying Rs 24.22 crore to procure 92,300 kg of the component even though the actual cost was only Rs 14.30 crore.
KSDL responded to the allegations saying its tender processes were transparent.
Meanwhile, the Lokayukta said it had formed seven teams to investigate Virupakshappa. A police officer told TNM that they were looking to issue a lookout notice against the MLA.
Formerly the chairman of KSDL, the Channagiri MLA resigned from the post after his son Prashant was caught accepting a Rs 40 lakh bribe. The bribe was allegedly for issuing a tender for procuring raw materials for KSDL on behalf of his father. Prashant, who works as a chief accountant with the Bangalore Water Supply and Sewerage Board, was arrested and has been placed in judicial custody. Additionally, authorities also seized Rs 8 crore from residences and offices connected to Prashant. The incident came as a shock to many in Karnataka, especially as the state gears up for elections later this year.