Major Scandals of 2011

By siliconindia   |   Friday, 30 December 2011, 22:31 IST
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Bellary mines scandal: Illegal iron ore mining was found to be taking place in the Bellary region of Karnataka. The illegal mining started after paying an infinitesimal royalty to the government. The major regularities involved were G. Karunakara Reddy and G. Janardhana Reddy who are ministers in the Government of Karnataka and also the owners of Obulapuram Mining Company (OMC). The CBI raided their residence and seized over 3 crore in cash and 30 kg of gold from Janardhana Reddy’s house and over Rs 1.5 crore in cash from Srinivas Reddy’s residence.

BL Kashyap - EPFO scam: This year also witnessed another scam with one of India's fastest-growing construction firms being charged with carrying out the country's biggest provident fund (PF) evasion. According to the EPFO order BL Kashyap and Sons excluded nearly 71,000 workers from PF benefits. The order also found huge variations in the wage payments booked by the firm in its audited balance sheets and the records submitted to the PF office, leading to suspicion that it employed more workers than it claimed. BL Kashyap and Sons Ltd whose clients include Taj Hotels, IBM ,Microsoft and Delhi's international airport were seen allegedly causing a loss of Rs 169 crore to the exchequer between 2005 and 2009 and were asked to fork out Rs 593 crore in PF dues and penalties.