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COURT OF THE XXIII ADDITIONAL CITY CIVIL & SESSIONS
JUDGE, BANGALORE CITY
(SPECIAL JUDGE, PREVENTION OF CORRUPTION ACT,
BANGALORE URBAN DISTRICT, BANGALORE)
P.C.R. NO………../2012
COMPLAINANT :
N. Venkateshaiah
Aged 94 years
S/o. Late Narayanappa
Residing at No.7 Sivaganga Mutt Road,
Chamaraj Pet, Bangalore – 18
Vs.
ACCUSED
:
1.
Dr. B.V. ACHARYA
AGED ABOUT 77 YEARS
Chairman, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
Bangalore – 560 004.
And residing at No.42, 5th Main Road,
Jayamahal Extension, Bangalore - 560 046
2.
H.U. TALWAR
AGED ABOUT 55 YEARS
Director, Technical Education
Palace Road, Bangalore – 560 001
Member, The Council of Trustees,
B.M.S. Educational Trust
Member, The Board of Management,
B.M.S. College of Engineering
3.
B.S. RAGINI NARAYAN
AGED ABOUT 70 YEARS
Member Secretary & Donor Trustee
The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi, Bangalore – 560 004.
4.
Dr. P. DAYANANDA PAI
AGED ABOUT 66 YEARS
Member, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
Bangalore – 560 004.
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5.
VIJAY GORE
AGED ABOUT 63 YEARS
Member, The Council of Trustees
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi
Bangalore – 560 004.
COMPLAINT U/S 200 R/W SEC. 190(A) OF THE CODE OF
CRIMINAL PROCEDURE
1.
The Complainant was the Author and Trustee of the Public Charitable Trust
called “Smt. LAKSHMAMMA B.M. SREENIVASAIAH CHARITIES”,
executed on 14.12.1995, which is registered as document No.3444/95-96,
registered with the Sub Registrar, Basavanagudi, Bangalore.
The Trust was
founded as per the desire of late B.S. Narayan, S/o. Late B.M. Srinivasaiah, in
terms of his Will DATED 17.12.1982.
Complainant
and M. Satyanarayanswamy
Under the said Trust Deed, the
were appointed as the first two
Trustees, apart from 3 other Trustees. The said Instrument of Trust was rectified
by the Deed of Rectification dated 28.02.1996 registered as document
No.4573/1995-96 in the office of the Sub Registrar, Basavanagudi, Bangalore. The
Compainant was the Managing Trustee. The Board of Trustees comprising of 5
Trustees. Other Trustees are (1) R.P.M. Sreenivasalu, (2) M.S. Papanna, (3) M.V.
Muralidhara. The object of the Trust was to carry on the charitable activities for
the benefit of the public in general and more particularly, for the benefit of the
poor, needy and meritorious students. The copy of the Trust Deed along with the
Deed of Rectification together is herewith produced and marked as Annexure-A
and Annexure-A1 respectively for the kind perusal of this Hon’ble Court. The
Complainant is a social worker and a freedom fighter. He was the President of the
Grain Merchants Co-operative Bank, No.2, Pampa Mahakavi Road, Chamarajpet,
Bangalore. He is also the President of Karnataka Balija Sangha for the past 30
years. He was the President of FKCCI (Federation of Karnataka Chamber of
Commerce and Industry). He was a close friend, associate and well wisher of late
B.M. Sreenivasaiah and late B.S. Narayan family.
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2.
Rajakaryaprasakta Dharmaprakasha the Late Sri. B.M.Sreenivasiah founded
an Educational Institution at Bangalore, in the year 1946 under the name and style
“BM Sreenivasaiah College of Engineering” for the promotion of studies in
engineering and higher technological fields. After the death of Rajakaryaprasakta
Dharmaprakasha, the Late Sri. B.M.Sreenivasiah, his son B.S Narayan, his wife
Smt. Lakshmamma and second wife Smt. Lakshmidevamma, mostly out of private
funds donated by them and out of fees, contributions and grants from the
Government of Mysore, and in implementation and furtherance of the intention of
the Founder and with a view to perpetuating his name, the legal heirs of the
Founder, being desirous of placing the institution on a permanent and lasting basis,
have been endeavouring to make it self sufficient with such endowments and
decided to constitute a Trust for the proper and efficient management of the “B.M.
Sreenivasaiah College of Engineering” and for the creation and maintenance of
like institutions, to provide instruction and impart learning and being further
desirous of broadening the scope of the functions and usefulness of the institution,
so as to afford added opportunities for higher and more specialized studies in the
field of Engineering Technology and other Sciences and Hamanities, with a view
to enable the institution to make its contribution to the economic and social well
being of the country and to the advancement of scientific knowledge and research,
decided to constitute an educational foundation for the proper, efficient
management of the Trust and for furtherance of the objects and purposes to be
incorporated in the Deed of Trust, have executed a Deed of Trust dated
02.12.1957, under the name “B.M. Sreenivasaiah Educational Trust”, as the
Donors in favour of (1) Sri.B.V. Narayana Reddy, (2) Sri.M.Narayana Rao, (3)
Sri.D.Mukherji, (4) Sri.B.M.Krishnan (nominee of the Government of Mysore)
and (5) Sri. B.S Narayan, as the Council of Trustees and referred to as the Trustees
to carry objects and purposes of the Trust being the custodian of the management
of the institutions and its properties which responsibility was accepted by them as
Trustees by participation in the Trust Deed, referred to above, as the Trustees,
which Deed was registered as documentNo.2944/57-58 in the office of the Sub
Registrar, Bangalore City South. The true copy of the Trust Deed is produced
herewith as Annexure-B.
The objects of the Trust are enumerated in para (II) of the Trust Deed as
“That the purposes and the objects of “THE TRUST” be, in addition to the
maintenance, control and management of B.M. Sreenivasaiah College of
Engineering, the creation, maintenance and management of institutions and
colleges for purposes, amongst others :
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(i)
of making provision for imparting education, literary and scientific
as well as technical and professional, of furthering original research,
of promoting the study of science, literature, medicine an art and other
branches of useful knowledge and of imparting physical and moral
training.
(ii)
of preparation of students for the Degree Examinations in
Engineering, Civil, Mechanical and Electrical of the University of
Mysore, to which the B.M. Sreenivasaiah College of Engineering is
for the present affiliated and for such other examinations, degrees,
diploma and the like of such universities or examining bodies or
authorities, as may, from time to time, be decided upon by “THE
TRUSTEES”.
(iii)
Of
dissemination
of
knowledge
in
Medicine,
Engineering
Technology, Commerce, Science and Art.
(iv)
Of providing facility for research in Engineering and Technological
subjects; for scientific inventions and achievements and with this end
in view, for providing to deserving students scholarships and
fellowships for higher studies in India and abroad,
v)
Of creating facilities for co-operation with other like institutions and
bodies, in the matter of exchange of students, lectures and professors
and facilities for research and participation in national and
international scientific and industrial conferences an to do and carry
out all similar purposes; and
vi)
Of expansion of the activities of “THE TRUST” for providing further
venues of study and research in higher Engineering, Medical and
other fundamental and applied sciences and humanities.
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The properties and funds of the Trust are enumerated in Para (III) of the Trust
Deed are :
“The movable properties consisting of laboratory equipment, machinery,
furniture, scientific appliances and instructions, books, periodicals and
journals of the library of an estimated value of about Rs.7,65,000/morefully particularized in item “o” Schedule 1 hereto to be taken
possession of by the trustees, as per inventory certified by the Principal of
the B.M. Sreenivasaiah College of Engineering.
The Government of India and the Government of Mysore, have been
considering the question of subsidizing the funds of ‘THE TRUST” with a
grant of Rs.3,50,000/- for the exclusive purposes of clearing the
encumbrances on the assets of “THE TRUST”. “THE TRUSTEES” shall
utilize this fund, when obtained, for clearing the encumbrance. If, however,
this question of subsidizing the funds of “THE TURST” with grants as
aforesaid, is not finalized or should fail for any reason, “THE TRUSTEES”
shall have the power to sell or otherwise dispose off, such portion of the
assets of “THE TRUST” moveable or immoveable, as they may deem fit and
clear the encumbrances out of the proceeds. In this latter event “THE
TRUST” shall take effect in respect of property remaining over after such
disposals. In addition, property in Item ‘A’ schedule I, along with other
property of the Donors are subject an encumbrance in favour of the
Government of Mysore, as security for an industrial loan of Rs.1,00,000/granted to Donor (1) herein above. Donor (1) has approached the
Government of Mysore to accept other security to confine the mortgage on
the other items of property belonging to DONORS and clear the
encumbrance on the schedule property. In any event, Donor(1) undertakes
and is liable to clear this encumbrance an till such period as the
encumbrance may continue, Donor(1) agrees and hereby undertakes to
create a charge over all his other immovable properties for purposes of
indemnifying the estate of “THE TRUST” on account of any dimunition in
the quantum or value of the estate “THE TRUST” that may be occasioned
on account of this encumbrance.
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All assets, effects, cash on hand or banks of the B.M. Sreenivasaiah College
of Engineering and all moveable and immoveable properties belonging to
and owned by the said college of engineering and institutions and
associations, subsidiary thereto or and forming part thereof.
The income of the institution by way of fees and other like incomes.
Contributions from the public for the general purpose of “THE TRUST”.
a)
Contributions
and
grants
recurring
and
non-recurring
from
Governments, state and Union Universities, foreign governments or
authorities, international authorities and bodies, cultural and
educational organizations of the United Nations and other like bodies,
to the institutions in existence or to be created in future, under “THE
TRUST”.
b)
Contribution by and grants from local bodies and authorities, and such
other incomes and resources obtained from whatever other sources for
the furtherance or the objects of “THE TRUST”.
The management of the Trust vesting with the Council of Trusteesd is enumerated
in Para (IV) of the Trust Deed reads –
Para (IV)
“i)
The Management of “THE TRUST” shall vest in ‘THE COUNCIL
OF TRUSTEES” consisting of five members.
Sri B.S. Narayan
“DONOR” hereto during his lifetime shall be a member of the
Council of Trustees and after him the successive senior-most lineal
descendant of the said Donor(1) shall be one such trustee/trustees and
shall have the powers and rights of Donor (1) under these presents. If
this mode of succession fails all the powers exercisable by the Donor
(1) under terms of this deed, including powers of appointment of
trustees under this deed, shall vest with the Government of Mysore.
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ii)
“THE TRUSTEES” shall have a Chairman elected annually from
amongst themselves.
iii)
“The Council of Trustees” constituted by these presents shall function
for a period of four years from the date on which this instrument
comes into effect and shall thereafter, be reconstituted once every four
years in the manner mentioned below, viz.,
a)
The Donor (1) shall appoint three members in addition to himself.
b)
One member shall be a person appointed or nominated by
Government of Mysore.
The Government of Mysore shall be
competent to remove and substitute at any time, the Trustees
appointed or nominate by them.
c)
In the event of any of the trustees, either in the first “council of
trustees” or in any of the subsequently constituted councils, becoming
incapable of acting or disclaiming the office as trustee or otherwise
becoming ineligible for all or any of the reasons set out in the Indian
Trust Act, a successors or a new trustee shall be appointed by the
authority competent to appoint or nominate the corresponding trustee
or trustees.
d)
In the event of the modes of appointments of Trustees under clauses
(b) and (c) sub para (iii) of Para IV supra, failing Donor (1)
hereinabove shall have power to nominate the corresponding number
of trustees.
The powers of the Trustees are enumerated in Para (VI) of the Trust are as
follows:
Para (VI)
i)
“The Trustees” shall have power to acquire, hold and invest all the
assets of “The Trust” and shall decide all matters concerning
investments of assets, returns and realizations.
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ii)
“The Trustees” shall have power to decide on matters relating to the
scope of the objects and purpose of “The Trust”.
iii)
“The Trustees” shall have power to decide all matters touching
relations and co-operation with other institutions, government bodies,
universities, local bodies and authorities, as also decide questions or
affiliations of institutions created under “The Trust” to universities
and other corporate bodies and “The Trustees” shall have the power to
sell, mortgage or otherwise encumber properties at their discretion
should such transactions be found proper in the interest of and
necessary for, promotion of the objects of “The Trust”.
“The
Trustees” shall have power to borrow funds against security or
otherwise and open an operate accounts in banks whether at credit or
debit.
iv)
“The Trustees” shall have power to determine, sanction and allot the
recurring and non-recurring expenditure of the institution or
institutions and to direct and approve capital and other expenditure.
v)
“The Trustees” shall have power to make rules for the conduct of their
own business and proceedings.
vi)
“The Trustees” shall have power to provide for and to make rules,
from time to time, for the conduct and proceedings of the Boards of
Management for purposes of the day-to-day administration or the
institutions now existing and to be created hereafter under “The
Trust”. They shall have power to delegate all or any of their functions
and powers to such “Boards of Management”.
vii)
Subject as aforesaid, “The Trustees” shall have power, from time to
time, to make or alter such rules and regulations with regard to the
conduct of business, and with regard to control of all matters in
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respect of which any power or duty stands vested with “The Trustees’
under these presents.
viii) “The Trustees” shall maintain or cause to be maintained, accurate,
audited, annual accounts of the income and expenditure of the Trust.
ix)
“The Trustees” shall ordinarily meet once in two months after the
issue of seven clear days notice by chairman or such other person duly
authorized in this behalf by the Chairman.
x)
“The Trustees” shall have power to appoint a secretary and such other
assistants on such remuneration as they may deem fit, in the
administration of “The Trust”.
xi)
All or any of the trusts and powers, vested in or exercisable by “The
Council of Trustees” shall be capable of being performed or exercised
by a majority of trustees for the time being and any action or decision
of such majority shall be as valid and effective as done by “The
council of Trustees.”
xii)
Notwithstanding anything contained in these presents ”The Trustees”
shall have power to alter, amend or to add to any of the clauses of this
document consistent with the objects and purposes of “The Trust”,
“The Trustees” shall have power to negotiate, conclude and effectuate
such agreements with Government State or Union, local bodies or
other authorities or bodies for purposes of obtaining financial and/or
technical aid in any form as they deem fit on such conditions as may
appear fit to them, for furtherance of the purposes of the institutions
created under “The Trust” and for that purpose shall have power to
include or to co-opt further trustee or trustees; to cede or curtail or
transfer all or any such power to any government or body) as may be
found fit and proper and to effect such alterations in the clauses of this
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deed, not inconsistent with the objects and purposes of “The Trust” as
in their opinion may appear necessary and desirable.
Provided that any resolution of “The Trustees” touching the
alterations of this Deed or amending of any of its clauses shall not be
operative unless concurred to by Donor(1) and approved by the
Government of Mysore.
Clause IX of the Trust Deed provides for Government intervention and
taking over the administration in the event of breakdown of constitution of the
Trust.
Clause IX of the Trust Deed reads “That in the event of breakdown of the constitution of this “Trust” it shall be
open to any trustee for the time being, to request Government of the State to render
such guidance as may appear necessary, including a temporary taking over of
administration of “The Trust” with the concurrence of Donor(1) herein above. It
shall also be open to the Government of the State in the event of such breakdown
to constitute such machinery with the concurrence of Donor(1) hereinabove, as
may be necessary for the due fulfillment of “The Trust”.
3.
At the time of constitution of B.M.S. Educational Trust, there was only one
educational institution running namely B.M.S. College of Engineering. The Trust
Deed provided for the rules for Constitution of the Board of Management of
B.M.S. College of Engineering, under Schedule III of the Trust Deed. The said
rules provides for Board of Management consisting of 12 members appointed and
nominated in the manner provided herein below:
a)
One member shall be a person nominated by the Government of Karnataka,
b)
Two members shall be persons nominated by the Government of Mysore, of
which one will act as Treasurer.
c)
One member shall be a person nominated by the Regional Committee of the
All India Council for Technical Education, Madras.
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d)
One member shall be a person nominated by the University of Mysore.
e)
The principal of B.M.Sreenivasaiah College of Engineering shall be an exofficio member.
f)
Four members shall be persons nominated by the Council of Trustees,
Dharmaprakasha
Rajakaryaprasakta
B.M.
Sreenivasaiah Educational
Trust.
g)
Two members shall be persons nominated or appointed by Sri B.S. Narayan,
Donor No.1 of the Dharmaprakasha Rajakaryaprasakta B.M. Sreenivasaiah
Educational Trust.
The Chairman of the Board shall be a person either nominated by the
Council of Trustees or at its direction elect a Chairman from amongst the members
of the Board.
The B.M.S. Educational Trust has, after its formation, started various other
educational institutions under it, apart from B.M.S. College of Engineering, viz.,
B.M.S. College for Women, B.M.S. Evening College of Engineering, B.M.S. Law
College and B.M.S. Institute of Technology (Engineering College).
4.
Under the Supplementary Deed of Declaration of Trust dated 25.06.1981
executed by the then Trustees of B.M.S. Education Trust viz., (1) Sri Kadidal
Manjappa, Chairman, (2) Sri B.S. Narayan, Member, (3) Sri Y. Ramachandra,
Member, (4) Sri A.C. Deve Gowda, Member, B.M.S. Educational Trust,
Basavanagudi, Bangalore and (5) Sri Noor Ahmed, Director of Technical
Education, Government of Karnataka, Member, (Government Nominee), B.M.S.
Educational Trust, Basavanagudi, Bangalore, as the Trustees, registered as
document No.498/1981-82 in the office of the Sub Registrar, Basavanagudi,
Bangalore, the following amendments to the original Deed of Trust was carried
out.
(1)
that Para V Clause 2 stands deleted and the following shall be
substituted :
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“All powers of General Administration, Control and
authority respecting “the Trust” and properties thereof shall
vest in “The Trustees”. “The Trustees” shall have power to
nominate one member of the Council as Managing Trustee
or any other person as Secretary and to delegate to him such
powers and functions as they may deem fit, including the
power to represent the Trust in all proceedings and to sign
and execute pleadings, papers or documents on behalf of the
Trust as may be specifically authorized by resolution of the
Council.”
(2)
that after Clause 12 in para VI and after the existing proviso, the
following shall be inserted and incorporated :
“Provided further that no amendments, additions or
alterations to the Trust Deed shall be made which might
prove to be repugnant to the provisions of Section 80 G/2
Sub Clause (XV) of the Indian Income Tax Act, 1961.”
(3)
that at the end of Para IX, the following shall be incorporated :
“in the event of dissolution or winding up of the Trust, the
assets remaining as on the date of dissolution should under
no circumstances be distributed among the Trustees, but the
same shall be transferred to another Trust, Society or
Association or Institution whose objects are similar to those
of this Trust, subject to para IX of this Deed”.
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(4)
that Para IV Clause (ii) onwards shall be deleted and substituted by
the following :
(ii)
“THE TRUSTEES” shall have a Chairman elected once I
three years from amongst themselves,
(iii)
“The Council of Trustees” constituted by these presents
shall function for a period of three years from the date on
which this instrument comes into effect and shall thereafter,
be reconstituted once every three years in the manner
mentioned below, viz.,
a)
The Donor (1) shall appoint three members in
addition to himself,
b)
One member shall be a person appointed or
nominated by Government of Karnataka.
The
Government of Karnataka shall be competent to
remove and substitute at any time, the Trustees
appointed or nominated by them,
c)
In the event of any of the Trustees, either in the First
“Council of Trustees”, or in any of the subsequently
constituted Councils, becoming in capable of acting
or disclaiming the office as Trustee, or otherwise
becoming ineligible for all or any of the reasons set
out in the Indian Trust Act, a successor or a new
Trustee shall be appointed by the authority competent
to appoint or nominate the corresponding Trustee or
Trustees,
d)
In the event of the modes of appointments of the
Trustees, under Clause (b) and Sub-para (iii) of Para
IV supra, failing Donor (1) hereinabove shall have
power to nominate the corresponding number of
Trustees.
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iv)
For the purposes of sub-para (i) of the Clause IV supra,
Donor (1) shall have the power in his place nominating any
person for such period or periods as may be specified or for
the lifetime of such member, to exercise all or any of the
powers vested in Donor (1) under this Deed as may be
delegated and nominate shall subject to the foregoing be
deemed to be Donor (1) within the meaning of this Deed.
(5)
that the following shall be added at the end of Para IX :
(ii)
the expression Government of Mysore occurring in the
Trust Deed shall be read as the Government of Karnataka”.
The copy of the Supplementary Deed of Declaration of Trust dated 25.6.1981
registered as Document No. 498/1981-82 in the Office of the Sub Registrar,
Basavanagudi, Bangalore is produced herewith as Annexure-C.
Again under the Deed of Amendment of Trust dated 27.01.1995 registered
as document No.531/1995-96 in the office of the Sub Registrar, Basavanagudi,
Bangalore, the following amendment to para IV(i) occurring in the original Trust
Deed was carried out.
Para IV(i)
“It is hereby declared that with immediate effect, the provisions of Para IV(i)
occurring in the original Deed of Trust dated 02.12.1957 shall stand deleted and be
substituted by the under-mentioned provision namely,
“Para IV(i). The Management of “THE TRUST” shall vest in the
“THE COUNCIL OF TRUSTEES” consisting of five members.
Sri B.S. Narayan, “DONOR” hereby during his lifetime shall be a
member and thereafter the successive senior most linear
descendant of the said Donor (1) or a member of the family
nominated by the Donor (1) or his wife shall be one such Trustee
and shall have the powers and rights of Donor (1) under these
presents.
If this mode of succession fails, all the powers
exercisable by the Donor (1) under the terms of this Deed
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including the powers of appointment of Trustees under this Deed
shall vest with the Government of Karnataka”.
The copy of the Deed of Amendment of Trust dated 27.01.1995 registered as
Document No.531/1995-96 in the Office of the Sub Registrar, Basavanagudi,
Bangalore, is produced herewith as Annexure-D.
5.
About the Aid from Government of Karnataka :
B.M.S. College of Engineering, even at the time of creation of the Trust, was
running with the financial assistance and aid from the Government of Mysore and
there is a clear mention about it in the Trust Deed.
Since the Educational
Institution was aided by the Government, a Government nominee was among the
five Trustees under the Deed of Trust. The Government of Karnataka has not only
assisted in the establishment of B.M.S. College of Engineering right from the
beginning, but has over the years, supported the Trust and its institutions. The
Government of Karnataka has, right at the inception of the Trust, provided
financial assistance as loan of Rs.1,00,000 to establish the B.M.S. College of
Engineering. The original Trust Deed dated 02.12.1957 also mentions a grant of
Rs.3.50 Lakhs which was to be provided by Government to clear the
encumbrances on the properties transferred to the Trust. Thereafter, over the years,
the State Government has provided financial assistance amounting to over
Rs.81,00,00,000/-
(Rupees Eighty one crores only) to the Trust’s institutions
which are not only run with the financial assistance of the Government, but which
have Government’s participation in their management through the B.M.S.
Educational Trust. The Institution-wise break-up of financial assistance provided
by Government over the years is shown below :
Sl.
No.
1.
Name of College
B.M.S. Engineering College, Bangalore
Grants/Financial
Assistance (Rs.)
46,04,70,597
(1968-2011) including TEQIP grant
2.
B.M.S. Evening Engineering College
Bangalore (from 1985-2011)
7,19,75,527
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3.
B.M.S. Women’s College, Bangalore
27,75,06,339
(From 1979-2010)
Total
80,99,52,463
The State Government has also given valuable urban properties worth more
than Rupees One hundred crores at present market value to locate the following
educational and other institutions of the Trust :
1)
B.M.S. College for Women : Land measuring 3939 sq.yards belonging to
Sri Karanji Anjaneyaswamy Temple in Basavanagudi, Bangalore, on a
nominal lease for 50 years from 1973.
2)
B.M.S. Law College : Land measuring 2635sq.yards and buildings thereon
belonging to Sri Karanji Anjaneyaswamy Temple in Basavanagudi,
Bangalore, on concessional lease since 1993.
3)
B.M.S. Educational Trust for establishing a Hospital : Land measuring
3752 sq.yards belonging to Doddabasavanna Temple, Bull Temple Road in
Basavanagudi, Bangalore, on concessional lease for 30 years since 1992.
4)
B.M.S. Law College : Land measuring 4 Acres 30 guntas in Sy.No.75 of
Chikkajala, granted at 25% of the market value in 2008. The land is worth
Rs.40 crores in the present market value.
6.
Sri B.S. Narayan, the Donor Trustee, fell ill in the middle of the year 1995
and was hospitalized and while undergoing treatment died on 23.08.1995. Before
his death, while in hospital, he executed a Deed dated 13.08.1995, appointing the
Government of Karnataka as the successor in his place in the event of his death.
Taking note of the said Deed, the Government of Karnataka issued a Notification
vide No.ED 108 TEC 95 dated 07.11.1995 and appointed Sri M.R. Srinivasa
Murthy as the Donor Trustee in place of deceased B.S. Narayan. Smt. Ragini
Narayan, claiming to be the wife of B.S. Narayan, has challenged the Notification
No.ED 108 TEC 95 dated 07.11.1995 issued by the Government of Karnataka
17
appointing Sri M.R. Srinivasa Murthy as the Trustee in place of Sri B.S. Narayan,
filed W.P. 40933/1995 before the Hon’ble High Court of Karnataka. During the
pendency of the Writ Petition, Adhoc arrangements for management of the Trust
and its institutions was made by appointing Trustees by the Hon’ble High Court of
Karnataka. The Writ Petition was disposed off by the order dated 19.08.1999
entrusting the management of the Trust to the Chairman and Trustees appointed by
the Hon’ble High Court of Karnataka, until the dispute between Smt. Ragini
Narayan and the Government of Karnataka is sorted out in the Civil Court. The
copy of the judgement dated 19.08.1999 passed in W.P. No.40933/1995 is
produced herewith as Annexure-E. From then onwards, the administration and
management of the Trust was in the hands of the Chairman and Trustees appointed
by the Hon’ble High Court of Karnataka.
7.
Thereupon, Accused No.3 Smt. Ragini Narayan filed a Comprehensive Suit
in O.S. No.2680/2000 before the City Civil Court, Bangalore, against (1) The
Principal Secretary to the Government of Karnataka, Education Department,
Karnataka Government Secretariat, Bangalore – 560 001, (2) The State of
Karnataka, represented by its Chief Secretary, Vidhana Soudha, Bangalore – 560
001, and (3) Shri M.R. Srinivasa Murthy, Secretary to the Government, Rural
Development and Panchayat Raj Department, M.S. Building, Bangalore – 560 001.
The said suit was disposed off by the Judgement and decree dated 31.07.2009
passed by the Court of the XXVII Additional City Civil Judge, Bangalore, in O.S.
No.2680/2000, decreeing the suit of the Plaintiff therein. The operative portion of
the decree is extracted hereunder :
“The suit of the Plaintiff is decreed.
It is declared that the Plaintiff is the Donor Trustee of
Dharmaprakasha
Rajakaryasaktha
B.M.
Sreenivasaiah
Educational Trust.
It is declared that the letter bearing No.ED 108 TEC 91
dated 07.11.1995, marked as Ex.P15
issued by the
Defendant is illegal, invalid, void, unconstitutional and not
binding on the Plaintiff.
18
It is further declared that letter No.ET/669-661/95-96 dated
8.11.1996, marked as Ex.P20, issued by the 3rd Defendant,
is also illegal, invalid, void and not binding on the Plaintiff.
It is further declared that the appointment of the 3 rd
Defendant, as the Donor Trustee of Shri B.M. Sreenivasaiah
Educational Trust, Bangalore, is null and void.
Further, the Defendants are hereby restrained from
interfering with the rights of the Plaintiff, to act and
function as the Donor Trustee of Shri B.M. Sreenivasaiah
Educational Trust, Bangalore, by way of permanent
injunction.
In the peculiar circumstances of the case, I pass no order as
to costs.
There shall be a decree in the above terms.”
The true copy of the judgement passed in O.S. No.2680/2000 passed by the
XXVII Additional City Civil Judge, Bangalore, is produced herewith as
Annexure-F.
8.
Soon after the judgement of the Civil Court, Smt. Ragini Narayan, as the
Donor Trustee, has appointed Sri (1) Dr. B.V. Acharya, (2) Vijay Gore, and (3)
Dr. P. Dayananda Pai as Member Trustees and the nominee of the Government of
Karnataka Sri H.U. Talwar
(Director of Technical Education, Department of
Technical Education (Government of Karnataka) at that point of time, was retained
as the nominee Trustee of the Council of Trustees. On 05.08.2009, the Council of
Trustees of B.M.S. Educational Trust held its meeting with Smt. Ragini Narayana,
Donor Trustee. Dr. B.V. Acharya, Member, Sri Vijay Gore, Member and Dr. P.
Dayananda Pai, Member were present and Sri H.U. Talwar was absent. In the said
meeting, Sri B.V. Acharya was elected as the Chairman of Board of Trustees of
B.M.S. Educational Trust and Smt. Ragini Narayan, Donor Trustee was elected as
Member Secretary of B.M.S. Educational Trust. In the said meeting, Chairpersons
of various Boards of management of Educational Institutions were also elected.
Dr. B.V. Acharya was elected Chairman of the Board of Management of B.M.S.
19
Law College. Smt. Ragini Narayan was elected as Chairman of the Board of
Management of B.M.S. College for Women. She was also elected Chairman of
International Co-operation Division. Sri Vijay Gore was elected as Chairman of
Board of Management of B.M.S. College of Engineering. He was also elected as
the Chairman of B.M.S. Evening College of Engineering, B.M.S. Institute of
Technology and Chairman of B.M.S. Educational Trust Hostel Committee.
The Honorarium to Chairpersons of various institutions under the Trust was fixed
as follows :
1.
B.M.S. College of Engineering – Rs.10,000/- p.m.
2.
B.M.S. Institute of Technology – Rs.10,000/- p.m.
3.
B.M.S. College for Women – Rs.5,000/- p.m.
4.
International Co-operation Division – Rs.15,000/- p.m.
In addition to the above, as per existing practice, Sumptuary allowance of
Rs.10,000/- per month each to Smt. Ragini Narayan and Sri Vijay Gore will
be paid.
Sri B.V. Acharya, Chairman, B.M.S. Educational Trust and Dr. P.
Dayananda Pai, Trustee expressed that they do not propose to receive any
honorarium from the Trust.
The copy of the proceedings of the meeting of the Council of Trustees held
on 05.08.2009 is produced herewith as Annexure-G.
9.
The Government of Karnataka, filed RFA No.788/2009 before the Hon’ble
High Court of Karnataka, challenging the judgement and decree passed in O.S.
No.2680/2000. By the judgement dated 24.03.2010 passed in R.F.A. No.788/2009,
the Hon’ble High Court of Karnataka has confirmed the judgement and decree
passed by the XXVII Additional City Civil Judge in O.S. No.2680/2000 and
dismissed the Appeal. The Copy of the judgement dated 24.03.2010 passed in
R.F.A. No.788/2009 by the Hon’ble High Court of Karnataka is produced herewith
as Annexure–H. The Hon’ble High Court of Karnataka has made the following
observations at para 45 of the judgement :-
20
“ Before parting, it is necessary to notice the repeated submission
of the learned Advocate General that the Trust in question being a
public trust owning valuable assets should be administered in a
manner so as to benefit the beneficiaries who are the general
public. Hence, it is appropriate that the Government should take
over that responsibility is the contention. In my view, it is very
premature at this stage to assume that the Plaintiff as one of the
trustees and the others nominated by her would not manage it in a
manner so as to serve public interest.
Yet it is necessary to
mention, though the legal right is held in favour of the Plaintiff,
she would have to be sensitive to this aspect of the matter. The
Plaintiff, as the wife of Donor (1) had the occasion to observe the
functioning of the trust for more than ten years until the death of
Donor (1). Thereafter, she has functioned as one of the members
of the managing body which was constituted by this Court in the
writ proceedings when interim arrangement was made till the suit
is decided. During this entire period i.e. during the lifetime of her
husband and thereafter, she had the occasion to see that at all
times, very eminent persons who were either former Chief
Minister or Retired Judges of this Court have managed the Trust
as Chairman and other eminent persons were the trustees. After
disposal of the suit when the Plaintiff had the occasion to
nominate the trustees, which is presently functioning, as informed
to this Court, eminent persons have been nominated and a former
Advocate General is functioning as the Chairman. In that view, I
am optimistic that the Plaintiff would discharge her onerous
responsibility by keeping the public interest in focus. Considering
the past history, the Plaintiff would be well to appoint former
constitutional
authorities,
former
Vice
Chancellors,
Educationalists and very eminent persons of high integrity to
function as Trustees and Chairman apart from herself, being one
of the Trustees as and when the need arises. Further, since the
Government has the right of nominating/appointing one trustee at
21
all times, they shall also appoint an appropriate person who shall
function as a watchdog in public interest. If all this caution is
thrown to the winds and if the Plaintiff does not aid the proper
functioning of the Trust, she would have to blame herself for
providing circumstances to the Government to exercise its power
as contemplated under clause IV (15) or such other legal options
which are even otherwise available, all of which no doubt would
be amenable for judicial review and scrutiny. Hence at this stage,
there is no scope for this Court to suggest any particular
committee.”
10.
The Council of Trustees of B.M.S. Educational Trust held its meeting on
14.06.2010 and all the 5 Trustees viz., (1) Dr. B.V. Acharya (Chairman), (2)
Sri Vijay Gore (Trustee), (3) Dr. P. Dayananda Pai (Trustee), (4) Smt. B.S.
Ragini Narayan (Donor Trustee and Member Secretary, (5) Sri H.U. Talwar,
DTE (Ex-Officio Trustee) were present.
In the said meeting, the Council of Trustees approved the following:The Council of Trustees approved remitting 50% tuition fees towards
Government share amounting to Rs.36,85,750/- (Rupees Thirty six lakhs
eighty five thousand seven hundred and fifty only) in respect of B.M.S.
Evening College of Engineering.
Under the head Honorarium to Trustees, the following decision was taken by
the Council of Trustees.
Honorarium to Trustees :
The issue of honorarium for the Trustees was discussed. It was felt that some
of our Trustees viz., Donor Trustee Smt. Ragini Narayan and Sri Vijay Gore
are required to shoulder higher responsibility, probably on day-to-day basis
compared to others. Therefore, it was considered appropriate to give them
suitable remuneration and other facilities to help them function better. The
details are as under :
22
1)
Monthly remuneration of Rs.1,00,000/- (Rupees One lakh only).
2)
It was decided that a suitable house shall be selected for the use of
Donor Trustee and Member Secretary and taken on rent. She shall
pay 10% of the remuneration as House Rent. House Rent Allowance
@ 25% of the monthly remuneration in case of other Trustee, who
stays in his own house, shall be paid.
3)
The respective institutions will pay Rs.10,000/- (Rupees Ten
Thousand only) per month as sumptuary allowance to the respective
Chairman/Chairperson for which they work.
4)
Suitable medical insurance package to take case of hospitalization for
the Trustee and the dependent family members.
5)
The expenditure on other medicines and various medical tests etc., but
not involving hospitalization shall be paid on reimbursement basis.
6)
The expenditure incurred on Telephones, both for landline as well as
Mobile, newspapers and magazines etc., to be reimbursed on monthly
basis.
7)
Leave travel concession for the Trustee and the Dependent family
members twice a year, at the best class offered by the Carriers, one of
these trips would be for a trip abroad.
8)
Vehicle(s) of their choice along with services of Driver to be placed at
their disposal for all purpose.
9)
The services of Security guard/Attended at the residence on
reimbursement basis at Rs.5,000/- (Rupees Five Thousand only) per
month.
10)
This arrangement shall come into effect with effect from 01.04.2010.
The copy of the proceedings of the meeting held on 14.06.2010 is
produced herewith as Annexure-J.
11.
On 19.07.2010, the Council of Trustees of B.M.S. Educational Trust held its
meeting with Smt. Ragini Narayana, Donor Trustee. Dr. B.V. Acharya, Member,
Sri Vijay Gore, Member and Dr. P. Dayananda Pai, Member were present and Sri
H.U. Talwar was absent and leave of absence was granted to him.
In the said meeting, the following decision was taken by the Council of Trustees :-
23
Subject -1
Confirmation of proceedings of Meeting of Council of Trustees held on
14.06.2010.
The Council of Trustees while going through the process of confirmation of
proceedings held on 14.06.2010 observed that in the Subject No.5, the honorarium
of Trustees, there was a typographical error which needed to be corrected. The
existing paragraph at 5(1) will now read as under :
“Monthly remuneration of Rs.2,00,000/- (Rupees Two Lakhs only).
All other
details remain unaltered. Dr. B.V. Acharya and Dr. P. Dayananda Pai reiterated
that they decline any remuneration to be paid to them for their services to the
Trust”.
Subject -4
Finance
(i)
Purchase of Car Toyota Innova for the use of Chiarman, BOM (Board
of Management), BMSCE/BMSIT (B.M.S. College of Engineering /
B.M.S. Institute of Technology):
The Council of Trustees ratified the action taken to purchase Toyota Innova
Car.
(ii)
Purchase of Car Skoda for the use of Donor Trustee and Member
Secretary, BMSET.
The Council of Trustees ratified the action taken to purchase Skoda Car.
The copy of the proceedings of the meeting of the Council of Trustees held
on 19.07.2010 is produced herewith as Annexure-K.
12.
The Government of Karnataka has preferred Special Leave Petition before
the Hon’ble Supreme Court of India in Special Leave Petition (Civil ) 25717/2010,
challenging the legality and correctness of the judgement of the Trial Court passed
in O.S. No.2680/2000 and confirmed in R.F.A. No.788/2009, and the same is
pending adjudication before the Hon’ble Supreme Court of India. The Respondent
24
therein who is Accused No.3 Smt. Ragini Narayan was notified in the Special
Leave Petition and has filed counter affidavit to the application filed by the
Appellant for condonation of delay in filing the Special Leave Petition. Along
with the counter affidavit, Smt. Ragini Narayan has produced copy of the
proceedings of the meeting of the Council of Trustee of B.M.S. Educational Trust
held on 05.08.2009 which is already produced as Annexure- G. In reply thereto,
the Government of Karnataka has filed rejoinder, answering the averments made in
the Counter Affidavit. Along with the rejoinder, (1) the copy of the proceedings of
the meeting dated 14.06.2010, (2) the copy of the proceedings of the meeting
dated 19.07.2010, (3) the copy of the Voucher dated 30.07.2010 towards the
Leave Travel Concession in a sum of Rs.2,28,306/- (Rupees Two lakhs twenty
eight thousand three hundred and six only) through cheque bearing No.073434 in
favour of Mrs. Vijay Gore, (4) Copy of the Invoice issued by Kross Connections
Travels Pvt. Ltd., towards flight and travel insurance charges, (5) Copy of the
receipt dated 26.06.2010 issued by Vinayaka Cars Pvt. Ltd. towards the purchase
of Skoda Car in a sum of Rs.24,41,237/- (Rupees Twenty four lakhs forty one
thousand two hundred and thirty seven only) vide cheque bearing No.073374.
Copy of the Voucher bearing No.242 dated 25.06.2010 issued by B.M.S.
Educational Trust evidencing payment of Rs.24,41,237/- towards purchase of car,
to Vinayaka Cars Pvt. Ltd. Copy of the Voucher bearing No.112 dated 12.05.2010
issued by B.M.S. Educational Trust evidencing payment of Rs.14,27,222/- towards
purchase of Toyota Innova car, to Moto World Limited, (6) Copy of the Invoice
issued by Nandi Toyota towards payment received for purchase of Toyota Innova
car and the letter dated 19.08.2010 on the letterhead of B.M.S. Educational Trust
addressed to Dr. S. Kumar, Executive Secretary, Comed-K regarding allotment of
seats of unaided Mechanical Engineering and Electronics and Communication
Engineering branches, were produced as Annexures 13 to 20. The Complainant
produce herewith the certified copy of the rejoinder to the Counter Affidavit filed
by the State of Karnataka supported by the Affidavit of the Under Secretary to the
Government, Education Department, filed in S.L.P. No.10979/2010 as AnnexureL, (7) the copy of the proceedings of the meeting of the Council of Trustees held
on 14.06.2010 and the same is produced herewith as Annexure-L1, (already
produced as Annexure-J) (8) The copy of the proceedings of the meeting of the
25
Council of Trustees held on 19.07.2010 as Annexure-L2, (already produced as
Annexure-K) (9) the copy of the Voucher dated 30.07.2010 towards the Leave
Travel Concession in a sum of Rs.2,28,306/- (Rupees Two lakhs twenty eight
thousand three hundred and six only) through cheque bearing No.073434 in favour
of Mrs. Vijay Gore as Annexure-L3, (10) the copy of the Invoice issued by Kross
Connections Travels Pvt. Ltd., towards flight and travel insurance charges as
Annexure-L4, (11) Copy of the receipt dated 26.06.2010 issued by Vinayaka Cars
Pvt. Ltd. towards the purchase of Skoda Car in a sum of Rs.24,41,237/- (Rupees
Twenty four lakhs forty one thousand two hundred and thirty seven only) vide
cheque bearing No.073374 as Annexure-L5, (12) Copy of the Voucher bearing
No.242 dated 25.06.2010 issued by B.M.S. Educational Trust evidencing payment
of Rs.24,41,237/- (Rupees Twenty four lakhs forty one thousand two hundred and
thirty seven only) towards purchase of car, to Vinayaka Cars Pvt. Ltd. as
Annexure-L6, (13) Copy of the Voucher bearing No.112 dated 12.05.2010 issued
by B.M.S. Educational Trust evidencing payment of Rs.14,27,222/- (Rupees
Fourteen lakhs twenty seven thousand two hundred and twenty two only) towards
purchase of Toyota Innova car, to Moto World Limited is produced as AnnexureL7, (14) Copy of the Invoice issued by Nandi Toyota towards payment received
for purchase of Toyota Innova car as Annexure-L8. Copy of the letter dated
19.08.2010 on the letterhead of B.M.S. Educational Trust addressed to Dr. S.
Kumar, Executive Secretary, Comed-K regarding allotment of seats of unaided
Mechanical Engineering and Electronics and Communication Engineering
branches and the same is produced herewith as Annexure-L9.
The text of the letter dated 19.08.2010 under the hand of Dr. Dayanand Pai
produced as Annexure-L9 is extracted hereunder:“Respected Sir,
Sub : Allotment of seats of unaided Mechanical Engineering and
Electronics and Communication Engineering branches – reg.
Ref : 1. DTE 13 ACM (1) 2009-10 dated 05.08.2010
2. ED 113 TEC 2010 dated 17.08.2010.
26
With reference to the above subject, we would like to bring to your kind
notice that our institution is offering Mechanical Engineering and
Electronics and Communication Engineering branches with an intake of 120
seats each as Government Aided Courses. Recently, Director of Technical
Education, Government of Karnataka, issued a letter dated 05.08.2010
converting both Mechanical and Electronics & Communication into two
sections, Aided with intake of 60 (sixty) seats and unaided with intake of 60
(sixty) with immediate effect.
The new Un-aided Mechanical and Electronics & Communication branches
with an intake of 60(sixty) seats each, is included in CET seat matrix for the
academic year 2010-2011.
Since the Comed-K counseling has already
started from 29.06.2010 and the Government approval was accorded
recently, vide letters dated 05.08.2010 and 17.08.2010, we request you, that
the seats share i.e. 25% for both the courses may not be included in the
second and final round of the Comed-K counseling for the academic year
2010-2011 in view of the above fact. However, the same may be included in
Comed-K Counselling from next academic year 2011-2012 onwards.”
Para 1 to 4 of the Rejoinder (Annexure-L) filed in Special Leave Petition
(Civil) No.25717/2010 are extracted hereunder :
“1)
The Petitioners herein having perused the counter affidavit filed on
behalf of Respondent-I submit that the B.M.S. Educational Trust is a Public
Charitable Trust established in the year 1957 and which has rendered great
service to the noble cause of promotiong higher education of quality in the
State of Karnataka. That the B.M.S. Educational Trust has got the following
institutions:a)
B.M.S. College of Engineering,
b)
B.M.S. College for Women,
c)
B.M.S. Evening College of Engineering,
d)
B.M.S. Law College, and
e)
B.M.S. Institute of Technology (Engineering College).
27
2)
That the time of the creation of the Trust, the authors of the Trust,
viz., Sri B.S. Narayan, his mother Smt. Lakshmamma and his step mother
Smt. Lakshmidevamma transferred properties worth Rs.22.25 lakhs to the
Trust along with a liability of Rs.3.50 Lakhs as recorded in the Trust Deed.
The first Council of Trustees, consisting of five members, one was a
nominee of Government of Karnataka as per the Trust Deed.
3)
The Government of Karnataka has not only assisted in the
establishment of B.M.S. College of Engineering right from the beginning,
but has over the years, supported the Trust and its institutions. The
Government of Karnataka has, right at the inception of the Trust, provided
financial assistance as loan of Rs.1,00,000 to establish the B.M.S. College of
Engineering. The original Trust Deed dated 02.12.1957 also mentions a
grant of Rs.3.50 Lakhs which was to be provided by Government to clear the
encumbrances on the properties transferred to the Trust. Thereafter, over the
years, the State Government has provided financial assistance amounting to
over Rs.81 Crores (Rupees Eighty one crores) to the Trust’s institutions
which are not only run with the financial assistance of the Government, but
which have Government’s participation in their management through the
B.M.S. Educational Trust. The Institution-wise break-up of financial
assistance provided by Government over the years is shown below :
Sl.
No.
1.
Name of College
B.M.S. Engineering College, Bangalore
Grants/Financial
Assistance (Rs.)
46,04,70,597
(1968-2011) including TEQIP grant
2.
B.M.S. Evening Engineering College
7,19,75,527
Bangalore (from 1985-2011)
3.
B.M.S. Women’s College, Bangalore
27,75,06,339
(From 1979-2010)
Total
80,99,52,463
28
4)
The State Government has also given valuable urban properties worth
more than Rupees One hundred crores at present market value to locate the
following educational and other institutions of the Trust :
a)
B.M.S. College for Women : Land measuring 3939 sq.yards
belonging to Sri Karanji Anjaneyaswamy Temple in Basavanagudi,
Bangalore, on a nominal lease for 50 years from 1973.
b)
B.M.S. Law College : Land measuring 2635sq.yards and buildings
thereon belonging to Sri Karanji Anjaneyaswamy Temple in Basavanagudi,
Bangalore, on concessional lease since 1993.
c)
B.M.S. Educational Trust for establishing a Hospital : Land
measuring 3752 sq.yards belonging to Doddabasavanna Temple, Bull
Temple Road in Basavanagudi, Bangalore, on concessional lease for 30
years since 1992.
d)
B.M.S. Law College : Land measuring 4 Acres 30 guntas in Sy.No.75
of Chikkajala, granted at 25% of the market value in 2008. The land is worth
Rs.40 crores in the present market value.
13.
In connection with the irregularities in admission of candidates to B.M.S.
Engineering College, the Deputy Secretary to Government Education Department
(Higher Education), issued Show Cause Notice dated 26.11.2011 addressed to Sri
Vijay Gore, Trustee, B.M.S. Educational Trust (Accused No.5), Smt. Ragini
Narayan, Donor Trustee, Member Secretary, B.M.S. Educational Trust (Accused
No.3) and Dr. P. Dayananda Pai, Trustee, B.M.S. Educational Trust (Accused
No.4), bringing to their notice the various irregularities committed and called upon
them to explain as to why affiliation of B.M.S. College of Engineering should not
be withheld or cancelled. The copy of the said letter is produced herewith as
Annexure-M.
The text of the letter at Annexure-‘M’ is extracted hereunder:“Sir/Madam,
Sub : Admissions made to B.E. courses for 2011-12 under Government
quota seats in deviation of norms.
Ref : 1) Consensual Agreement for 2011-12.
29
2) Government Order No.ED 128 TEC 2011 dated 22.06.2011.
3) Circular of KEA dated 19.10.2011.
4) Letter dated 24.10.2011 from Principal, B.M.S. College of
Engineering,
5) Report of KEA dated 2.11.2011.
6) Government letter of even number dated 05.11.2011.
7) Letter dated 9/15.11.2011 of Principal, B.M.S. College of
Engineering.
8) Letter dated 15.11.2011 from the Trustee Dr. P. Dayananda Pai.
B.M.S. College of Engineering is a Government-aided Institution run
by B.M.S. Educational Trust. The admissions for engineering seats
are governed by consensual agreement, namely the seat sharing
between the college and the government in respect of aided
engineering institution is in the ratio of 95:5 as per G.O. No.ED 128
TEC 2011 dated 02.06.2011 for the academic year 2011-12.
The Karnataka Examinations Authority (KEA) has conducted
reconciliation meeting on 22.10.2011 for B.M.S. College of
Engineering as per the Circular dated 19.10.2011. The Principal of
B.M.S. College of Engineering in his letter dated 24.10.2011
addressed to the Executive Director, KEA, has stated that there were
66 seats remained as ‘unfilled’ due to cancellation of 20 seats and 46
students as ‘not reported’.
As per the reconciliation report of Karnataka Examinations Authority
dated 02.11.2011 addressed to the Government, 67 government quota
seats have been shown as ‘not reported’ in aided and unaided
branches of B.E. course in your institution. Based on the report of
KEA, the Principal of B.M.S. College of Engineering was directed to
furnish the complete details of cancellation/not reported, seats filled,
names of students who have been admitted against these seats and
dates of admissions vide Government letter dated 5.11.2011.
30
The Principal of B.M.S. College of Engineering has furnished in his
letter dated 9/15.11.2011 the list of students who cancelled under
government quota seats, list of students not reported under CET quota
and the list of students admitted against the vacancies due to
cancellation/not reported. The Government has examined the details
furnished by your institution. It is noticed that 8 admissions were
made in government quota seats even during process of counseling.
Further, the Trustee Dr. P. Dayananda Pai in his letter dated
15.11.2011 has informed that the management has admitted two
students over and above the approved intake under management quota
for B.E. (Arch) course by an error that has crept in and requested for
regularization of the same.
On seeing the above details, it is observed that during the process of
CET counseling, some of the government seats have been filled under
management quota and also made excess admissions as reported by
the management.
Therefore the B.M.S. College of Engineering,
which is an aided institution has violated the norms of consensual
agreement, Karnataka Selection of Candidates for admission to
Government seats in Professional Educational Institutions Rules,
2006, VTU Act, Statutes and Regulations besides AICTE norms.
You are therefore directed to explain as to why affiliation of B.M.S.
College of Engineering should not be withheld/cancelled/to
recommend to the competent authority to bring the institution under
‘No admission category’ as per Rules. Your response should reach
Government by 3.12.2011.”
14.
The Complainant has secured the copy of the Income Tax returns of BMS
Educational Trust submitted for the year 2010-11, from the Chartered Accountant
31
B.K. Ramadhyani and Company, copy of which is produced herewith as
Annexure-N.
Under the head Expenditure towards Honorarium, a sum of Rs.8,04,418/- (Rupees
Eight lakhs four thousand four hundred and eighteen only) is shown to have been
paid for the year ending 31.03.2010 and a sum of Rs.76,28,615/- (Rupees Seventy
six lakhs twenty eight thousand six hundred and fifteen only) is shown to have
been paid for the year ending 31.03.2011. Thus more than Rs.6,50,000/- (Rupees
Six lakhs fifty thousand only) approximately per month is being taken away in the
account of payment of Honorarium to the Trustees.
Under the head “Grants”, the Trust has received Rs.6,74,91,567/- (Rupees Six
Crore Seventy Four Lakhs Ninety One Thousand Five Hundred and Sixty Seven
only) for the year ending 31.03.2010 and Rs.12,13,90,964/- (Rupees Twelve crores
thirteen lakhs ninety thousand nine hundred and sixty four only) for the year
ending 31.03.2011.
Under the head Bank balances, the Bank balance of the Trust which was
Rs.10,67,78,036/- (Rupees Ten crores sixty seven lakhs seventy eight thousand and
thirty six only) as on 31.03.2010 is brought down to Rs.10,28,31,819/- (Rupees
Ten crores twenty eight lakhs thirty one thousand eight hundred and nineteen only)
as on 31.03.2011.
Under the head Fixed Deposit, the Fixed Deposits with Banks which was
Rs.69,77,03,636/- (Rupees Sixty nine crores seventy seven lakhs three thousand
six hundred and thirty six only) as on 31.03.2010 is brought down to
Rs.55,72,17,894/- (Rupees Fifty five crores seventy two lakhs seventeen thousand
eight hundred ninety four only) as on 31.03.2011.
Amounts reserved on account of Developmental activities
For the year 2007-08 a sum of Rs.5,50,00,000/- (Rupees Five crores fifty lakhs
only) was reserved for developmental activities to be utilized for the year 2012-13.
(This amount is shown to have been used in the year 2010-11)
32
For the year 2008-09 a sum of Rs.7,70,00,000/- (Rupees Seven crores seventy
lakhs only) was reserved for developmental activities to be utilized for the year
2013-14.
For the year 2010-11 a sum of Rs.6,60,00,000/- (Rupees Six crores sixty lakhs
only) was reserved for developmental activities to be utilized for the year 2015-16.
For the year 2011-12 a sum of Rs.8,00,00,000/- (Rupees Eight crores only) was
reserved for developmental activities to be utilized for the year 2016-17.
The total amount shown to have been accumulated from 2008 to 2012 is
Rs.22,30,00,000/- (Rupees Twenty two crores thirty lakhs only).
15.
Sri H.K. Prabhakar, S/o. Late H.S. Krishnamurthy has filed writ petition
No.31135/2011 before the Hon’ble High Court of Karnataka against (1) The State
of Karnataka, represented by its Principal Secretary, Dept. of Higher Education,
M.S. Buildings, Ambedkar Veedhi, Bangalore – 560 001, (2) The Trustees &
Chairman, B.M.S. Educational Trust, Bull Temple Road, Bangalore – 560 019, (3)
Sri Vijay Gore, The Chairman, Board of Management, B.M.S. College of
Engineering and B.M.S. Institute of Technology, Bull Temple Road, Bangalore –
560 016, (4) The Principal, B.M.S. College of Engineering, Bull Temple Road,
Bangalore – 560 019, (5) The Principal, B.M.S. College of Technology,
Yelahanka, Bangalore – 560 064, (6) The Director of Technical Education, State of
Karnataka, Palace Road, Bangalore – 560 001, (7) The Regional Director, AICTE,
P.K. Block, Palace Road, Bangalore – 560 009, alleging mismanagement and
misappropriation in the matter of admission of candidates under the Management
Quota. Sri S. Surendra Babu, S/o. Late Shankaraiah and Sri Manjunath, S/o. D.
Lakshmana, have filed writ petitions No.33134/2011 and 33135/2011 before the
Hon’ble High Court of Karnataka against (1) State of Karnataka, by its Principal
Secretary to Government, Dept. of Higher Education, M.S. Buildings, Ambedkar
Veedhi, Bangalore – 560 001, (2) B.M.S. Educational Trust, Bull Temple Road,
Bangalore – 560 019, by its Trustees and Chairman, (3) The Principal, B.M.S.
College of Engineering, Bull Temple Road, Bangalore – 560 019, (4) The Director
33
of Technical Education, Govt. of Karnataka, Palace Road, Bangalore – 560 009,
(5) The Regional Director, AICTE, P.K. Block, Palace Road, Bangalore – 560 009,
(6) Administrative Officers, B.M.S. Educational Trust, Bull Temple Road,
Bangalore – 560 019, (7) Sri M.R. Bhagwan Singh, Assistant Professor,
Mechanical Department, B.M.S. College of Engineering, Bull Temple Road,
Bangalore – 560 019, making similar allegations of misuse of admission of
candidates under the Management Quota. The above writ petitions are pending
adjudication and interim orders are passed. Along with the writ petitions, the
Petitioners therein have produced admissions notification issued by B.M.S.
College of Engineering, for the academic year 2011, along with the AICTE
guidelines, statements showing the details of admission to the 1st year B.E. 201011 of B.M.S. College of Engineering (autonomous stream) of the branches
Chemical Engineering, Information Science, Telecommunication Engineering,
Computer Science, Industrial Engineering and Management, Electronics &
Communication Engineering, Electrical and Electronics Engineering, Mechanical
Engineering and Civil Engineering. The Complainant has obtained the copies of
the aforesaid writ petitions along with their annexures from the respective
Petitioners. The copy of the Writ petition No.31135/2011 is produced herewith as
Annexure-O. The copy of the writ petition No.33135/2011 is produced herewith
as Annexure-P.
Copy of the admission notification along with the AICTE
guidelines is produced herewith as Annexure-P1. Copy of the statements showing
the details of admission to 1st year B.E. for the year 2010-11 in various branches is
produced herewith as Annexure-P2 to P17. Copy of the interim regulations is
produced herewith as Annexure-P18. Copy of the letter dated 28.12.2010 is
produced herewith as Annexure-P19.
Copy of the letter dated 07.07.2011
addressed to the Chief Minister of Karnataka, requesting to take suitable action in
this regard is produced herewith as Annexure-P20. Copy of the letter dated
30.12.2010 addressed to H.K. Prabhakar by Sri Vijay Gore in reply to the letter
dated 22.12.2010 written by H.K. Prabhakar to the Management about the
irregularities
and
violations
done in admission is produced herewith as
Annexure-21. Copy of the letter dated 05.01.2011 addressed to Sri Vijay Gore
from H.K. Prabhakar in response to the reply dated 30.12.2010 is produced
herewith as Annexure-P22. Copy of the letter dated 27.04.2011 addressed to Dr.
34
K. Shreekumar, Director, South Western Regional Office, from H.K. Prabhakar,
alleging illegal, corrupt practices and violation of AICTE Rules and Supreme
Court orders in admissions to NRI and Management Quota category for 1 st year
B.E. is produced herewith as Annexure-P23. Copy of the letter dated 28.04.2011
addressed to Sri B.V. Acharya from H.K. Prabhakar, alleging financial
irregularities and admission irregularities in the institutions managed by B.M.S.
Educational Trust and violations of Trust Act, Educational Act and Income Tax
Act is produced herewith as Annexure-P24. Copy of the letter dated 07.06.2011
addressed to The Deputy Secretary, UGC from Sri H.K. Prabhakar, highlighting
various illegalities such as collecting higher fees in management quota without
any merit, criteria as per UGC rules and Supreme Court orders is produced
herewith as Annexure-P25. Copy of the representation dated 08.07.2011
addressed to The Registrar, VTU, Belgaum, from H.K. Prabhakar highlighting
admission violations under NRI management quota for the year 2010-11 and also
conversion of aided branch of Mechanical and Electronics into partially unaided
branches reducing seats in CET quota for poor an meritorious students, including
the major violations of COMED-K quota seats, is produced herewith as
Annexure-P26. Copy of the letter dated 23.03.2010, addressed to the Director of
Technical Education, Govt. of Karnataka, Bangalore, from Sri Vijay Gore,
requesting the government to sanction the staff pattern in tune with the increase in
intake with immediate effect or allow the management to consider the enhanced
intake as unaided and fill the seats as per the unaided Private Engineering college
norms, is produced herewith as Annexure-P27.
Copy of the letters dated
13.07.2010 addressed to The Director, Dept. of Technical Education, Bangalore,
from Principal Secretary, Education Department (Higher Education), Govt. of
Karnataka, regarding conversion of Aided courses to Unaided Course for
additional students of the institutions mentioned therein, is produced herewith as
Annexure-P28.
16.
The Complainant through his Advocate Sri L.S. Manjunath had applied to
the Department of Higher Education as well as Technical Education through R.T.I.
to obtain the documents pertaining to the B.M.S. Educational Trust and by the
Endorsement dated 09.02.2012 from the Principal Secretary to Government,
35
Education Department (Higher Education), Bangalore, has clearly stated that the
matter is pending before the Hon’ble Supreme Court of India and the documents
will be issued only after the final verdict from the Hon’ble Supreme Court of India.
The
three R.T.I.
Applications dated 27.01.2012 are produced herewith as
Annexures-Q, Annexure-Q1 and Annexure-Q2 and the endorsement dated
09.02.2012 is produced herewith as Annexure-R.
17.
Taking advantage of the amendment to clause IV(iv) of the Trust Deed
under the Supplementary Deed, Smt. Ragini Narayan has virtually negotiated with
Dr. P. Dayananda Pai, to strike a deal of transferring the interest of the Trust to
him, sometime prior to the pronouncement of the judgement in O.S. No.2680/2000
dated 31.07.2009 and in pursuance of the said deal between Smt. Ragini Narayan
and Dr. P. Dayananda Pai, the transaction under which is kept secret, as sale of
the properties and assets of the Trust is impermissible in law, Smt. Ragini
Narayan and Dr. P. Dayananda Pai have decided to bring in Dr. B.V. Acharya as
the Trustee along with two others of his choice, in the name of Nomination by Smt.
Ragini Narayan and pursuant thereto Dr. B.V. Acharya, Sri Vijay Gore and Dr. P.
Dayananda Pai were nominated and appointed by Smt. Ragini Narayan as the
Council of Trustees and Dr. B.V. Acharya who is a Legal Practitioner and was a
former Advocate General, was appointed as the Chairman of the Council of
Trustees. The persons of the choice of Dr. P. Dayananda Pai were appointed as the
Members of the Board of Directors of B.M.S. College of Engineering and other
colleges such as B.M.S. College of Law and B.M.S. College for Women. Sri Vijay
Gore was elected as Chairman of Board of Management of (1) B.M.S. College of
Engineering, (2) B.M.S. Evening College of Engineering, (3) B.M.S. Institute of
Technology, and (4) B.M.S. Educational Trust Hostel Committee, proposed by Dr.
P. Dayananda Pai and seconded by Smt. Ragini Narayan. Smt. Ragini Narayan
was elected as the Chairman (1) Board of Management, B.M.S. College for
Women and (2) International Co-operation Division, duly proposed by Sri Vijay
Gore and seconded by Dr. P. Dayananda Pai. Dr. B.V. Acharya was elected as the
Chairman, Board of Management, B.M.S. College of Law duly proposed by Dr.
Dayananda Pai and seconded by Smt. Ragini Narayan.
36
18.
Thus the First Accused Dr. B.V. Acharya, apart from being a Trustee in the
Council of Trustees is the Chairman of Council of Trustees and he is also the
Chairman of B.M.S. College of Law. Smt. Ragini Narayan is the Donor Trustee
and Member Secretary to B.M.S. Educational Trust and she is also the Chairman,
Board of Management, B.M.S. College for Women and International Co-operation
Division. Sri Vijay Gore is a Trustee in the Council of Trustees and the Chairman
of Board of Management of (1) B.M.S. College of Engineering,
(2) B.M.S.
Evening College of Engineering, (3) B.M.S. Institute of Technology, and (4)
B.M.S. Educational Trust Hostel Committee. All these appointments are made at
the behest of Dr. P. Dayananda Pai, who has an underhand dealing with Smt.
Ragini Narayan.
19.
Sri B S Narayan, during his life time founded B.M.S. Medical Trust in the
year 1991.
Presently Ragini Narayan (Accused No.3) is the Chairman and
Dayanand Pai (Accused No.4) is one of the Trustees of B.M.S. Medical Trust.
There has been serious allegations of misappropriation of funds in connection with
procurement of equipments including import and appointment of managing staff
and administration of the Trust. Sri G R Krishna and another have filed Misc.
Petition No.871/2004 against the Management of B.M.S. Medical Trust under
Section 92 of the Code of Civil Procedure before the City Civil Court, Bangalore,
alleging
serious
maladministration
and
mismanagement
including
misappropriation of funds and has sought for removal of the Trustees and for
direction to the Government of Karnataka to take over the affairs of the Trust.
B.M.S. Medical Trust is an integral part and a subsidiary of B.M.S. Educational
Trust.
20. MANNER OF MISAPPROPRIATION OF FUNDS:
(a)
The Honorarium to the Trustees of the Council of Trustees which was fixed
between Rs.10,000/- to Rs.15,000/- in August 2011 was enhanced to Rs.1 Lakh in
the case of two trustees viz., (1) Vijay Gore and (2) Smt. Ragini Narayan in June
2010, which was again revised to Rs.2,00,000/- (Rupees Two lakhs only) per
month in July 2010 by stating that there was a typographical error in mentioning
37
the amount of honorarium in the meeting held in June 2010. The expenditure in the
account of honorarium for the year 2009-10 is shown as Rs.8,04,480/- and for the
year 2010-11 is shown as Rs.76,28,650/- in the Income Tax returns. Accused No.3
Smt. Ragini Narayan who is not only Member Secretary of the Council of
Trustees, being the Donor Member, she is also the Chairman, Board of
Management, B.M.S. College for Women and International Co-operation Division
and the documents demonstrate that she is enjoying a luxurious life at the cost of
the public trust which includes her residence and a posh car of value of
Rs.24,41,237/- (Rupees Twenty four lakhs forty one thousand two hundred and
thirty seven only) and monthly honorarium of Rs.2,00,000/- (Rupees Two lakhs
only). Similarly, Accused No.5 Sri Vijay Gore who is not only a member trustee
of the Council of Trustees of B.M.S. Educational Trust, but is the Chairman (1)
Board of Management of B.M.S. College of Engineering, (2) B.M.S. College of
Engineering, (3) B.MS. Institute of Technology and (4) B.M.S. Educational Trust
Hostel Committee and he also has a luxury of enjoying 25% of rental allowance,
the comfort of a car and monthly honorarium of Rs.2,00,000/- (Rupees Two lakhs
only).
That apart, substantial amounts are being spent for providing vehicle,
drivers, security etc., to the Trustees apart from travel allowances twice in a year,
which includes travel abroad with family members.
The Trustee in a public
charitable trust are not expected to draw an honorarium or remuneration. All the
five trustees of the Council of Trustees are responsible for the decisions taken in
the proceedings of the meeting of the Council of Trustees. All the expenditures
spent under all the expenses made and amounts withdrawn under the head
“Honorarium to the Trustees” of the Council of Trustees are the outcome of the
unilateral decision of all the Five Accused and all of them are liable to answer such
expenditures / withdrawals.
(b)
Under the head of Admission of Candidates
Huge sums of money running into crores of rupees is being collected without
account for the same as donation from candidates under the Management Quota,
overlooking merit candidates and also by filling up the vacancies, if any, under
different categories by giving admissions to such ineligible candidates by
collecting unaccounted donations. The statements of admissions of candidates of
38
various branches as detailed in Annexure-P2 to P17 clearly indicate such
malpractice. The daughter of Sri D. Manjunath, the Second Petitioner in Writ
petition No.33135/2011 who had secured 82% in II P.U.C., though had submitted
the application in time, was denied admission as against which candidates who
secured much less marks are admitted in various branches. The pleadings in Writ
Petition Nos.33134-35/2011 along with the statement of admission at AnnexureP2 to P17 clearly demonstrate misuse of Management Quota for pecuniary gain. In
the letter dated 26.11.2011 at Annexure-M, the Deputy Secretary has sought for
explanation from B.M.S. College of Engineering as to why affiliation of B.M.S.
College of Engineering should not be withheld/cancelled / to recommend to the
competent authority to bring the institution under “No admission category” as per
Rules, as it is observed that during the process of CET counseling, some of the
government seats have been filled under management quota and also made excess
admissions as reported by the management. Therefore, the B.M.S. College of
Engineering, which is an aided institution has violated the norms of consensual
agreement, Karnataka Selection of Candidates for admission to Government seats
in professional educational institutions Rules, 2006, VTU Act, Statutes and
Regulations besides AICTE norms.
(c)
A close scrutiny of Income and Expenditure of various accounts in the
returns submitted to the Income Tax Department by B.M.S. Educational Trust
clearly demonstrate that all is not well with the Trust and there is mismanagement
of huge sums of money and it is the Accused persons who are responsible for all
such mismanagement and mis-utilisation. In the Income Tax Returns of B.M.S.
Educational Trust at Annexure-N, under the head Expenditure towards
Honorarium, a sum of Rs.8,04,418/- (Rupees Eight lakhs four thousand four
hundred and eighteen only) is shown to have been paid for the year ending
31.03.2010 and a sum of Rs.76,28,615/- (Rupees Seventy six lakhs twenty eight
thousand six hundred and fifteen only) is shown to have been paid for the year
ending 31.03.2011. Thus more than Rs.6,50,000/- (Rupees Six lakhs fifty thousand
only) approximately per month is being taken away in the account of payment of
Honorarium to the Trustees.
39
Under the head “Grants”, the Trust has received Rs.6,74,91,567/- (Rupees Six
Crore Seventy Four Lakhs Ninety One Thousand Five Hundred and Sixty Seven
only) for the year ending 31.03.2010 and Rs.12,13,90,964/- (Rupees Twelve crores
thirteen lakhs ninety thousand nine hundred and sixty four only) for the year
ending 31.03.2011.
Under the head Bank balances, the Bank balance of the Trust which was
Rs.10,67,78,036/- (Rupees Ten crores sixty seven lakhs seventy eight thousand and
thirty six only) as on 31.03.2010 is brought down to Rs.10,28,31,819/- (Rupees
Ten crores twenty eight lakhs thirty one thousand eight hundred and nineteen only)
as on 31.03.2011.
Under the head Fixed Deposit, the Fixed Deposits with Banks which was
Rs.69,77,03,636/- (Rupees Sixty nine crores seventy seven lakhs three thousand
six hundred and thirty six only) as on 31.03.2010 is brought down to
Rs.55,72,17,894/- (Rupees Fifty five crores seventy two lakhs seventeen thousand
eight hundred ninety four only) as on 31.03.2011.
Amounts reserved on account of Developmental activities
For the year 2007-08 a sum of Rs.5,50,00,000/- (Rupees Five crores fifty lakhs
only) was reserved for developmental activities to be utilized for the year 2012-13.
(This amount is shown to have been used in the year 2010-11)
For the year 2008-09 a sum of Rs.7,70,00,000/- (Rupees Seven crores seventy
lakhs only) was reserved for developmental activities to be utilized for the year
2013-14.
For the year 2010-11 a sum of Rs.6,60,00,000/- (Rupees Six crores sixty lakhs
only) was reserved for developmental activities to be utilized for the year 2015-16.
For the year 2011-12 a sum of Rs.8,00,00,000/- (Rupees Eight crores only) was
reserved for developmental activities to be utilized for the year 2016-17.
40
The total amount shown to have been accumulated from 2008 to 2012 is
Rs.22,30,00,000/- (Rupees Twenty two crores thirty lakhs only).
The Accused persons are misutilizing huge sums of money separately withheld in
the name of developmental activities and all of them are parties to the
misappropriation of huge sums of money as each one of them is the Constituent of
the Council of Trustees which has the ultimate control over the cash holdings of
the Institution under the Trust.
(d)
All the five trustees who are named in the Complaint are trustees of the
Council of Trustees entrusted with the management of the Trust and its institutions,
including its properties and cash holdings and they are answerable for unaccounted
and excess expenditure and shortfalls of the accounted money. All of them will be
guilty of the offence of criminal breach of trust in respect of every paise
misutilised or excessively spent or removed in any account. The Trust being a
public charitable trust, if act of misappropriation is proved, each one of the
Trustees will be guilty of the offence punishable under section 409 I.P.C.
(e)
The materials placed on record by the Complainant prima facie proves
maladministration and excessive withdrawal of money for the pleasure, happy and
luxurious living of the Trustees, apart from amassing huge sums of money in the
form of unaccounted donations.
(f)
Any person who is an office bearer or an employee of an educational,
scientific, social, cultural or other institution, in whatever manner established,
receiving or having received any financial assistance from the Central Government
or any State Government or local or other public authority, is a public servant
within the meaning of section 2 (c) (xii) of Prevention of Corruption Act, 1988.
Thus, everyone of the Accused is a public servant within the meaning of Section 2
(c) (xii) of the Prevention of Corruption Act, 1988.
(g)
Even though appointment of Accused Nos. 1, 4 and 5 is by Accused No.3
and they are not appointed by the Government, they fall within the category of
41
public servant as defined under section 2(c)(xii) of the Prevention of Corruption
Act.
Similarly Accused No.3 though Donor/Trustee and her Trusteeship is
permanent until the Government of Karnataka succeeds in the Special Leave
Petition
and she cannot be removed from Trusteeship except for proof of
maladministration, by the Government, since she is holding the position of
Member Secretary of the Council of Trustees and Chairman, Board of
Management, B.M.S. College for Women and the Chairman, International Cooperation Division, she is also a public servant within the meaning of Section
2(c)(xii) of the Prevention of Corruption Act.
Accused No.1 is not only the Trustee of the Council of Trustees, but he is also the
Chairman of the Council of Trustees of B.M.S. Educational Trust and he is also the
Chairman, Board of Management, B.M.S. College of Law.
Irrespective of
whether, he is receiving any honorarium by way of cash or not, he is enjoying
several other facilities which are sanctioned to the Trustees as well as Chairman of
the Board of Management, as per the sanctions made by the Council of Trustees in
the proceedings of the meetings held. He is directly answerable to the funds
misappropriated by way of unaccounted donations and misappropriation of funds
retained in the name of developmental activities, as well as expenditures /
withdrawal, made under the head “Honorarium to the Trustees”.
Accused No.2 is a Public Servant by virtue of his employment as Director,
Technical Education, Government of Karnataka and he is an ex-officio Trustee as
he is nominated and appointed by the Government of Karnataka to take care of the
interests of the Trust and to prevent maladministration and he is removable from
office by the appointing authority. Any act of misconduct committed by him in his
capacity as the Trustee directly or indirectly amounts to official misconduct.
Without his knowledge and consent, the Council of Trustees cannot take any
decision, even though decision of majority of Council of Trustees could be taken
as final and binding, the proceedings does not indicate that Accused No.2 has
objected to passing any sanction by the Council of Trustees in its meeting and
therefore, he is deemed to be a consenting party to the actions taken by the Council
42
of Trustees. He is a party to the acts of misappropriation done by others of the
funds of the trust.
Accused No.3 is not only Member Secretary of the Council of Trustees,
being the Donor Member, she is also the Chairman, Board of Management, B.M.S.
College for Women and International Co-operation Division and the documents
demonstrate that she is enjoying a luxurious life at the cost of the public trust
which includes her residence and a posh car of value of Rs.24,41,237/- (Rupees
Twenty four lakhs forty one thousand two hundred and thirty seven only) and
monthly honorarium of Rs.2,00,000/- (Rupees Two lakhs only), apart from being a
party to the misappropriation of unaccounted donation and misutilisation of funds
received for developmental activities.
Accused No.5 is not only a member trustee of the Council of Trustees of
B.M.S. Educational Trust, but is the Chairman (1) Board of Management of
B.M.S. College of Engineering, (2) B.M.S. College of Engineering, (3) B.MS.
Institute of Technology and (4) B.M.S. Educational Trust Hostel Committee and
he also has a luxury of enjoying 25% of rental allowance, the comfort of a car and
monthly honorarium of Rs.2,00,000/- (Rupees Two lakhs only) apart from being
a party to the misappropriation of unaccounted donation and misutilisation of funds
received for developmental activities.
Accused No.4, though he is only a member trustee of the Council of Trustee
is the brain behind the entire scheme of malpractices as he has virtually purchased
the entire property of the trust from Smt. Ragini Narayan under a sham transaction
and it is he who is managing not only the Trust, but also the various institutions
and controlling the movement of the funds of the Trust and its institutions. He is
master brain behind the entire conspiracy to misappropriate the funds. He is also
enjoying certain comforts such as 25% of rental allowance, provision for use of
car, driver, security etc., though officially not deriving any honorarium. He is the
kingpin of collection of donations from ineligible candidates by admitting them by
taking huge sums of donation to various branches at the cost and expense of
eligible candidates, mostly under the Management Quota and occasionally under
43
other categories, wherever vacancies arise. Annexure-H9 clearly spells out that he
is controlling the entire affairs of the Trust, though he is officially not holding any
other position. The statements of admissions that Annexure-P2 to P17 clearly
indicates admission of candidates who have secured less percentage of marks byepassing the candidates who have secured higher marks. No standard educational
institution, which is aided by the Government and managed by a public charitable
trust will go on allotting seats to ineligible candidates overlooking the fate of
eligible candidates waiting in the list, except for pecuniary gain.
21.
Even otherwise Accused No.2 is the public servant as he discharges the
functions of a public servant being the Trustee of the Council of Trustees and any
act of misconduct for pecuniary gain either for himself or for others committed by
him is punishable under section 13(2) read with Section 13(1)(d) of the Prevention
of Corruption Act, and other Accused who are parties to the fraud are beneficiaries
of such acts of misconduct and they are abettors for the commission of the said
offence.
22.
Thus Accused No.1 to 5 have committed the offence of Criminal breach of
trust punishable under Section 409 of I.P.C. in furtherance of Criminal Conspiracy,
to commit the said offence punishable under Section 120-B I.P.C. and all of them
are guilty of the offence defined under Sections 7, 13(1)(d) read with Section 13(2)
of Prevention of Corruption Act, either directly or alternatively, Accused No.2
directly and other Accused as abettors for commission of the offence under Section
13(2) read with 13(1)(d) by applying Section 109 of I.P.C.
There is every
possibility of evidence being collected to prove the offence under section 13(2)
read with 13(1)(e) of the Prevention of Corruption Act, during investigation of the
case.
23.
The Accused have amassed huge sums by the act of misappropriation and by
illegally collecting huge donations from candidates and the Accused must have
either preserved such huge sums or may have converted such sums into properties
or other assets. Verification of books of accounts, receipts, expenditure accounts
44
etc., including deposits in Bank accounts and various transactions involving
development activities is necessary to ascertain the quantum of misappropriation
committed by the Accused from the day they have assumed office as Trustees of
the Council of Trustees of B.M.S. Educational Trust and the Chairman of the
Board of Management of various educational institutions. It is also necessary to
carry out search and seizure of either the cash holding or assets acquired from the
misappropriated funds. The Complainant has no access any such documents and
he cannot reach out to such documents. Thus investigation is necessary to collect
material evidence, to unfold the charges leveled in the Complaint based on the
available documents.
24.
The Complainant, who is a law abiding citizen and
a social worker, apart from being Managing Trustee of ‘SMT.
LAKSHMAMMA
B.M.
SREENIVASIAH
CHARITIES’,
has
approached the Government, at the first instance, and later the Lokayuktha,
but to no avail. Lokayuktha is insisting on production of documentary
proof of misappropriation and evidence of participation of public servants
in the commission of offence of misappropriation, to entertain a complaint.
Therefore, the Complainant has no other alternative, but to approach this
Hon’ble Court, praying for a direction to investigate the case. Involvement
of several officials in the Government of Karnataka is evidently possible, in
the perpetration of the crime. Such involvement can be traced out only by
means of effective investigation. The public trust was constituted for the benefit of
the public at large and if immediate preventive measures are not taken, apart from
misappropriation of huge sums periodically and very huge sums annually, the very assets of
the Trust will get transferred to the hands of Dr. P.Dayananda Pai, who has virtually become
the owner of the trust by managing its affairs, by taking into confidence the Trustees and
members of the Council of trustee and Board of Management.
WHEREFORE, the Complainant above named, prays that the Hon’ble Court be pleased to take
cognizance of the offence against the accused and deal with them according to law or
alternatively refer this complaint to Lokayuktha Police, Bangalore, for investigation and report,
in the interest of justice.
Bangalore
25-2-2012
45
COURT OF THE XXIII ADDITIONAL CITY CIVIL & SESSIONS
JUDGE, BANGALORE CITY
(SPECIAL JUDGE, PREVENTION OF CORRUPTION ACT,
BANGALORE URBAN DISTRICT, BANGALORE)
P.C.R. NO………../2012
COMPLAINANT :
N. Venkateshaiah
Aged 94 years
S/o. Late Narayanappa
Residing at No.7 Sivaganga Mutt Road,
Chamaraj Pet, Bangalore – 18
Vs.
ACCUSED
:
1.
Dr. B.V. ACHARYA
AGED ABOUT 77 YEARS
Chairman, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
Bangalore – 560 004.
And residing at No.42, 5th Main Road,
Jayamahal Extension, Bangalore - 560 046
2.
H.U. TALWAR
AGED ABOUT 55 YEARS
Director, Technical Education
Palace Road, Bangalore – 560 001
Member, The Council of Trustees,
B.M.S. Educational Trust
Member, The Board of Management,
B.M.S. College of Engineering
3.
B.S. RAGINI NARAYAN
AGED ABOUT 70 YEARS
Member Secretary & Donor Trustee
The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi, Bangalore – 560 004.
4.
Dr. P. DAYANANDA PAI
AGED ABOUT 66 YEARS
Member, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
46
5.
Bangalore – 560 004.
VIJAY GORE
AGED ABOUT 63 YEARS
Member, The Council of Trustees
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi
Bangalore – 560 004.
LIST OF WITNESSES
The Complainant above named herewith produced the following witnesses :
1.
B. SATHYANARAYANA
Aged 49 years
S/o. B. Krisnamurthy
President, B.M. Sreenivasaiah Recreation Club, Punganur.
Residing at No.26/89, Thotimakula Palyam
Punganur, Chittoor District,
2.
The Principal, B.M.S. College of Engineering
3.
The Principal, B.M.S. Institute of Technology’
4.
The Principal, B.M.S. College for Women
5.
The Principal, International Co-operation Division
6.
The Administrator, B.M.S. College of Engineering
7.
The Administrator, B.M.S. Institute of Technology’
8.
The Administrator, B.M.S. College for Women
9.
The Administrator, International Co-operation Division
10.
The Accountant, B.M.S. College of Engineering
11.
The Accountant, B.M.S. Institute of Technology’
12.
The Accountant, B.M.S. College for Women
13.
The Accountant, International Co-operation Division
14.
The Deputy Secretary, University Grants Commission,
UGC South Western Regional Office, Prasanna Kumar Block
Palace Road, Gandhinagar, Bangalore – 560 009.
47
15.
Mr. K. Rahamathulla, Deputy Secretary to Government
Education Department, (Higher Education).
16.
Mr. C.R. Krishna
Partner, B.K.Ramadhyani & Company
Chartered Accountants
No.4-B, Chitrapura Bhavan
No.68, 8th Main, 15th Cross
Malleswaram, Bangalore – 560 003.
17.
Mr. H.K. Prabhakar
S/o. Late H.S. Krishnamurthy
Aged about 68 years
C/o. Ganesh Electricals & Electronics
No.20/A1, 6th Main Road, 7th Cross, N.R. Colony
Bangalore – 560 019
18.
S. Surendra Babu
S/o. Late Shankaraiah
Aged about 53 years
C/o. 175, 1st Floor, 24th Cross
6th Block, Jayanagar, Bangalore – 560 082.
19.
D. Manjunath
S/o. d. Laxmana
Aged about 50 years
C/o. 175, 1st Floor, 24th Cross
6th Block, Jayanagar, Bangalore – 560 082.
The Complainant prays to permit him to furnish further list of witnesses during the
course of investigation or trial, of the case, as the case may be.
Place : Bangalore
Date: 14.02.2012
Complainant
48
COURT OF THE XXIII ADDITIONAL CITY CIVIL & SESSIONS
JUDGE, BANGALORE CITY
(SPECIAL JUDGE, PREVENTION OF CORRUPTION ACT,
BANGALORE URBAN DISTRICT, BANGALORE)
P.C.R. NO………../2012
COMPLAINANT :
N. Venkateshaiah
Aged 94 years
S/o. Late Narayanappa
Residing at No.7 Sivaganga Mutt Road,
Chamaraj Pet, Bangalore – 18
Vs.
ACCUSED
:
1.
Dr. B.V. ACHARYA
AGED ABOUT 77 YEARS
Chairman, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
Bangalore – 560 004.
And residing at No.42, 5th Main Road,
Jayamahal Extension, Bangalore - 560 046
2.
H.U. TALWAR
AGED ABOUT 55 YEARS
Director, Technical Education
Palace Road, Bangalore – 560 001
Member, The Council of Trustees,
B.M.S. Educational Trust
Member, The Board of Management,
B.M.S. College of Engineering
3.
B.S. RAGINI NARAYAN
AGED ABOUT 70 YEARS
Member Secretary & Donor Trustee
The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi, Bangalore – 560 004.
4.
Dr. P. DAYANANDA PAI
AGED ABOUT 66 YEARS
Member, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
49
5.
Bangalore – 560 004.
VIJAY GORE
AGED ABOUT 63 YEARS
Member, The Council of Trustees
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi
Bangalore – 560 004.
LIST OF DOCUMENTS
The Complainant above named herewith submits the following list of
documents :
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Copy of the Trust Deed dated 14.12.1995 - Annexure-A.
The true copy of the Trust Deed dated 02.12.1957 - Annexure-B.
Copy of the Supplementary Deed of Declaration of Trust dated 25.06.1981 –
Annexure-C.
The copy of the Deed of Amendment of Trust dated 27.01.1995 Annexure-D.
The copy of the judgement dated 19.08.1999 passed in W.P. No.40933/1995
- Annexure-E
The true copy of the judgement passed in O.S. No.2680/2000 passed by the
XXVII Additional City Civil Judge, Bangalore - Annexure-F.
The copy of the proceedings of the meetings held on 05.08.2009 Annexure-G.
The Copy of the judgement dated 24.03.2010 passed in R.F.A. No.788/2009
- Annexure–H.
The copy of the proceedings of the meeting held on 14.06.2010 Annexure-J.
The copy of the proceedings of the meeting held on 19.07.2010 Annexure-K.
The certified copy of the rejoinder to the Counter Affidavit, filed in S.L.P.
No.10979/2010 and the same is marked and produced herewith as
Annexure-L.
The copy of the proceedings of the meeting of the Council of Trustees held
on 14.06.2010 - Annexure-J1.
The copy of the proceedings of the meeting of the Council of Trustees held
on 19.07.2010 - Annexure-K1.
50
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
The copy of the Voucher dated 30.07.2010 towards the Leave Travel
Concession in a sum of Rs.2,28,306/- through cheque bearing No.073434 in
favour of Mrs. Vijay Gore - Annexure-L1.
The copy of the Invoice issued by Kross Connections Travels Pvt. Ltd.,
towards flight and travel insurance charges - Annexure-L2.
Copy of the receipt dated 26.06.2010 issued by Vinayaka Cars Pvt. Ltd.
towards the purchase of Skoda Car in a sum of Rs.24,41,237/- vide cheque
bearing No.073374 - Annexure-L3.
Copy of the Voucher bearing No.242 dated 25.06.2010 issued by B.M.S.
Educational Trust evidencing payment of Rs.24,41,237/- towards purchase
of car, to Vinayaka Cars Pvt. Ltd. - Annexure-L4.
Copy of the Voucher bearing No.112 dated 12.05.2010 issued by B.M.S.
Educational Trust evidencing payment of Rs.14,27,222/- towards purchase
of Toyota Innova car, to Moto World Limited - Annexure-L5.
Copy of the Invoice issued by Nandi Toyota towards payment received for
purchase of Toyota Innova car - Annexure-L6.
Copy of the letter dated 19.08.2010 on the letterhead of B.M.S. Educational
Trust addressed to Dr. S. Kumar, Executive Secretary, Comed-K Annexure-L7.
The letter dated 26.11.2011 – Annexure-M.
The copy of the Income Tax returns submitted for the year 2010-11 of
B.M.S. Educational Trust, from the Chartered Accountant B.K. Ramadhyani
and Company - Annexure-N.
The copy of the Writ petition No.31135/2011 - Annexure-O.
The copy of the writ petition No.33135/2011 - Annexure-P.
Copy of the admission notification along with the AICTE guidelines Annexure-P1.
Copy of the statements showing the details of admission to 1st year B.E. for
the year 2010-11 in various branches - Annexure-P2 to P17.
Copy of the interim regulations - Annexure-P18.
Copy of the letter dated 28.12.2010 - Annexure-P19.
Copy of the letter dated 07.07.2011 addressed to the Chief Minister of
Karnataka, requesting to take suitable action in this regard - Annexure-P20.
Copy of the letter dated 30.12.2010 addressed to H.K. Prabhakar by Sri
Vijay Gore - Annexure-P21.
Copy of the letter dated 05.01.2011 addressed to Sri Vijay Gore from H.K.
Prabhakar in response to the reply dated 30.12.2010 - Annexure-P22.
51
32.
33.
34.
35.
36.
37.
38.
39.
Copy of the letter dated 27.04.2011 addressed to Dr. K. Shreekumar,
Director, South Western Regional Office, from H.K. Prabhakar, Annexure-P23.
Copy of the letter dated 28.04.2011 addressed to Sri B.V. Acharya from
H.K. Prabhakar - Annexure-P24.
Copy of the letter dated 07.06.2011 addressed to The Deputy Secretary,
UGC from Sri H.K. Prabhakar, - Annexure-P25.
Copy of the representation dated 08.07.2011 addressed to The Registrar,
VTU, Belgaum, from H.K. Prabhakar - Annexure-P26.
Copy of the letter dated 23.03.2010, addressed to the Director of Technical
Education, Govt. of Karnataka, Bangalore, from Sri Vijay Gore, Annexure-P27.
Copy of the letters dated 13.07.2010 addressed to The Director, Dept. of
Technical Education, Bangalore, from Principal Secretary, Education
Department (Higher Education), Govt. of Karnataka - Annexure-P28.
The 3 R.T.I. Applications dated 27.01.2012 - Annexures-Q,
Annexure-Q1 and Annexure-Q2
The endorsement dated 09.02.2012 - Annexure-R.
Place : Bangalore
Date: 14.02.2012
Complainant
52
COURT OF THE XXIII ADDITIONAL CITY CIVIL & SESSIONS
JUDGE, BANGALORE CITY
(SPECIAL JUDGE, PREVENTION OF CORRUPTION ACT,
BANGALORE URBAN DISTRICT, BANGALORE)
P.C.R. NO………../2012
COMPLAINANT :
N. Venkateshaiah
Aged 94 years
S/o. Late Narayanappa
Residing at No.7 Sivaganga Mutt Road,
Chamaraj Pet, Bangalore – 18
Vs.
ACCUSED
:
1.
Dr. B.V. ACHARYA
AGED ABOUT 77 YEARS
Chairman, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
Bangalore – 560 004.
And residing at No.42, 5th Main Road,
Jayamahal Extension, Bangalore - 560 046
2.
H.U. TALWAR
AGED ABOUT 55 YEARS
Director, Technical Education
Palace Road, Bangalore – 560 001
Member, The Council of Trustees,
B.M.S. Educational Trust
Member, The Board of Management,
B.M.S. College of Engineering
3.
B.S. RAGINI NARAYAN
AGED ABOUT 70 YEARS
Member Secretary & Donor Trustee
The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi, Bangalore – 560 004.
4.
Dr. P. DAYANANDA PAI
AGED ABOUT 66 YEARS
Member, The Council of Trustees,
B.M.S. Educational Trust
Bull Temple Road, Basavanagudi
53
5.
Bangalore – 560 004.
VIJAY GORE
AGED ABOUT 63 YEARS
Member, The Council of Trustees
B.M.S. Educational Trust
Bull Temple Road
Basavanagudi
Bangalore – 560 004.
INDEX
Sl. No.
1.
Particulars
Complaint u/s 200 R/W Sec. 190(A) of the Code of Criminal
Procedure.
2.
List of Documents
1. Copy of the Trust Deed dated 14.12.1995 - Annexure-A.
2. The true copy of the Trust Deed dated 02.12.1957 Annexure-B.
3. Copy of the Supplementary Deed of Declaration of Trust
dated 25.06.1981 – Annexure-C.
4. The copy of the Deed of Amendment of Trust dated
27.01.1995 - Annexure-D.
5. The copy of the judgement dated 19.08.1999 passed in
W.P. No.40933/1995 - Annexure-E.
6. The true copy of the judgement passed in O.S.
No.2680/2000 passed by the XXVII Additional City Civil
Judge, Bangalore - Annexure-F.
7. The copy of the proceedings of the meetings held on
05.08.2009 - Annexure-G.
8. The Copy of the judgement dated 24.03.2010 passed in
R.F.A. No.788/2009 - Annexure–H.
9. The copy of the proceedings of the meeting held on
14.06.2010 - Annexure-J.
10. The copy of the proceedings of the meeting held on
19.07.2010 - Annexure-K.
11. The certified copy of the rejoinder to the Counter
Affidavit, filed in S.L.P. No.10979/2010 and the same is
marked and produced herewith as Annexure-L.
Page
Nos.
C.F.Paid
54
12. The copy of the proceedings of the meeting of the Council
of Trustees held on 14.06.2010 - Annexure-J1.
13. The copy of the proceedings of the meeting of the Council
of Trustees held on 19.07.2010 - Annexure-K1.
14. The copy of the Voucher dated 30.07.2010 towards the
Leave Travel Concession in a sum of Rs.2,28,306/through cheque bearing No.073434 in favour of Mrs.
Vijay Gore - Annexure-L1.
15. The copy of the Invoice issued by Kross Connections
Travels Pvt. Ltd., towards flight and travel insurance
charges - Annexure-L2.
16. Copy of the receipt dated 26.06.2010 issued by Vinayaka
Cars Pvt. Ltd. towards the purchase of Skoda Car in a sum
of Rs.24,41,237/- vide cheque bearing No.073374 Annexure-L3.
17. Copy of the Voucher bearing No.242 dated 25.06.2010
issued by B.M.S. Educational Trust evidencing payment
of Rs.24,41,237/- towards purchase of car, to Vinayaka
Cars Pvt. Ltd. - Annexure-L4.
18. Copy of the Voucher bearing No.112 dated 12.05.2010
issued by B.M.S. Educational Trust evidencing payment
of Rs.14,27,222/- towards purchase of Toyota Innova car,
to Moto World Limited - Annexure-L5.
19. Copy of the Invoice issued by Nandi Toyota towards
payment received for purchase of Toyota Innova car Annexure-L6.
20. Copy of the letter dated 19.08.2010 on the letterhead of
B.M.S. Educational Trust addressed to Dr. S. Kumar,
Executive Secretary, Comed-K - Annexure-L7.
21. The letter dated 26.11.2011 – Annexure-M.
22. The copy of the Income Tax returns submitted for the year
2010-11 of B.M.S. Educational Trust, from the Chartered
Accountant B.K. Ramadhyani & Company- Annexure-N.
23. The copy of the Writ petition No.31135/2011 Annexure-O.
24. The copy of the writ petition No.33135/2011- Annexure-P.
25. Copy of the admission notification along with the AICTE
guidelines - Annexure-P1.
55
26. Copy of the statements showing the details of admission
to 1st year B.E. for the year 2010-11 in various branches Annexure-P2 to P17.
27. Copy of the interim regulations - Annexure-P18.
28. Copy of the letter dated 28.12.2010 - Annexure-P19.
29. Copy of the letter dated 07.07.2011 addressed to the Chief
Minister of Karnataka, requesting to take suitable action in
this regard - Annexure-P20.
30. Copy of the letter dated 30.12.2010 addressed to H.K.
Prabhakar by Sri Vijay Gore - Annexure-P21.
31. Copy of the letter dated 05.01.2011 addressed to Sri Vijay
Gore from H.K. Prabhakar in response to the reply dated
30.12.2010 - Annexure-P22.
32. Copy of the letter dated 27.04.2011 addressed to Dr. K.
Shreekumar, Director, South Western Regional Office,
from H.K. Prabhakar, - Annexure-P23.
33. Copy of the letter dated 28.04.2011 addressed to Sri B.V.
Acharya from H.K. Prabhakar - Annexure-P24.
34. Copy of the letter dated 07.06.2011 addressed to The
Deputy Secretary, UGC from Sri H.K. Prabhakar, Annexure-P25.
35. Copy of the representation dated 08.07.2011 addressed to
The Registrar, VTU, Belgaum, from H.K. Prabhakar Annexure-P26.
36. Copy of the letter dated 23.03.2010, addressed to the
Director of Technical Education, Govt. of Karnataka,
Bangalore, from Sri Vijay Gore, - Annexure-P27.
37. Copy of the letters dated 13.07.2010 addressed to The
Director, Dept. of Technical Education, Bangalore, from
Principal Secretary, Education Department (Higher
Education), Govt. of Karnataka - Annexure-P28.
38. The 3
R.T.I.
Applications dated 27.01.2012 Annexures-Q, Annexure-Q1 and Annexure-Q2.
39. The endorsement dated 09.02.2012 - Annexure-R.
Vakalath
Place : Bangalore
Date : 14.02.2012
Advocate for the Complainant