Sufficient Evidence To Show Involvement Of BJP MLA Madal Virupakshappa In Corruption Case : Karnataka High Court In Bail Plea

There is sufficient evidence to show the involvement of BJP MLA Madal Virupakshappa in the corruption case, observed the Karnataka High Court while dismissing his anticipatory bail application in connection with a bribe case.

Virupakshappa was the Chairman of Karnataka Soaps and Detergents Ltd (KSDL) but resigned after his son V Prashanth Madal was allegedly caught red-handed by the Lokayukta while accepting a bribe in relation to a contract. The allegation was that Virupakshappa had demanded a bribe of Rupees 80 lakhs for awarding the tender of KSDL. The tenderer in turn complained to the Lok Ayukta. The Lok Ayukta police set up a trap and sent Rs 40 lakhs with the complainant which was handed over to the son of accused.

A single judge bench of Justice K Natarajan said :  “I am of the view that the custodial interrogation of the petitioner-accused No.1 is very much necessary for the Lokayukta police. Though this Court granted the interim anticipatory bail until disposal of the case, because there was no material found in FIR at that time, but now, there is sufficient evidence to show the involvement of the petitioner in the commission of offence as per the case diary of the police and statement of Mohan under Section 164 of Cr.P.C.”

It added :  “Therefore, the custody of the petitioner is imminent for the Lokayukta police to interrogate him in the matter. At this stage, this Court feels that the interim anticipatory bail, requires to be cancelled as the petitioner-accused No.1 has not properly co-operated with the investigation officer.”

"If the petitioner is on bail, there is every possibility of apprehension by the witnesses and they may not come forward to give evidence or statement against him without fear", the Court said.

The bench observed :  “Though the alleged offence is not directly on the economic offence against the State, but KSDL is a public limited company belonging to the State Government, it has floated the tender process for purchasing the chemicals or raw materials for production of Mysore Sandal Soaps. If the company (participating in tender) pays more than crores of rupees as commission or bribe, one cannot expect the good quality of raw materials will be supplied by the said company and the very tender process followed by the tender accepting Committee and accepting the lowest price and good quality of raw materials will be frustrated.”

Further the bench opined : “The public auction process through online would remain as an empty formality and eye wash to the public as they are following the KTPP Act. They are giving the tender to a person who is bribing the Committee or the head of the Committee who is holding the higher position in the tender procuring process. If at all respondent No.2 and his company has legally participated in the tender process activities, the question of paying the bribe does not arise.”

With these observations, the bench dismissed the application and cancelled the earlier order granting interim anticipatory bail to him.

In a related development, the Supreme Court today issued notice on the petition filed by the Karnataka Lok Ayukta against the previous order of the High Court granting interim anticipatory bail to Virupakshappa. 

Case Title: K. Madal Virupakshappa And State of Karnataka

Case No: Criminal Petition No 1976/2023

Citation 2023 LiveLaw (Kar) 125

Date of Order: 27-03-2023.