BEML proposes, 'DNA' exposes

The Tatra truck deal, which proved to be VRS Natarajan’s nemesis, is not the only transaction in which the CMD of government-run BEML was involved. DNA has published eight stories on Natarajan’s murky deals. Following are excerpts from the reports published by DNA earlier.

Flouting norms
The BEML Employees’ Cooperative Society (BECS) was in the dock for allotting sites to influential employees by flouting eligibility norms. Despite paying for sites, many genuine applicants continue to live in rented houses after retirement. Natarajan and his friend KRM Reddy, who was BEML general manager (HR), were allotted sites measuring 70ft x 80ft and 61ft x 31ft. Reddy sold a portion of the site No. 797 (914.5 sq ft) to Natarajan who already owned two sites - plot nos. 795 and 796 - as per the documents available with DNA.

Guest house becoming residence
Natarajan, who got a residential site (No. 91) at a layout formed by BECS at Bogadi village, claimed 3340/1, Paramahamsa Road, Yadavagiri, Mysore, as his residential address. It was, in fact, BEML’s guest house. Natarajan mentioned his age as 52 years in the sale deed entered on March 2, 2005 between BECS and himself while he claimed to be aged 53 years in a rectification deed entered with BECS on January 31, 2005.

Amalgamating sites
BECS handed over two sites (795 and 796) to Natarajan on January 22, 2005. Natarajan applied to Bangalore Development Authority (BDA) for amalgamation of the sites on August 25, 2005. The BDA, on September 14, 2005, advised him to pay ` 10,774 and issued an order on the amalgamation of the two sites on September 20, 2005.

Natarajan also ensured that Uma Devi Nambiar, a family friend of TKA Nair, the advisor to prime minister Manmohan Singh, got a site. He also played a key role in getting a site for Nair’s niece Preethi Prabha. After the media exposed the illegal deals, both Uma  and Preethi surrendered their sites to BECS.

Land deal
This story began in 1997 when Natarajan was the manager at Bharat Gold Mines (BGML), which was engaged in mining gold from its captive mines in Kolar Gold Fields (KGF) located in Karnataka and Andhra Pradesh. On March 21, 1997, Natarajan’s father SV Rangaswamy bought one acre and four guntas of land near Varthur, Bangalore. Rangaswamy, who hails from Vellalore in Coimbatore, declared his residential address as: 1115, 25th Main, 3rd Cross, Ist Phase, JP Nagar, Bangalore. But here is the curious bit: the address mentioned by Rangaswamy was, in fact, the residential address of Natarajan’s friend KRM Reddy, who was also working with BGML.

Dubious enterprise
Champion Textiles, promoted by Natarajan’s wife Shanthi Natarajan, claimed in a rejoinder sent to DNA on July 27, 2011, that it was into land development business in association with a builder. It claimed that each site was sold for Rs3 lakh to Rs4 lakh and that it sold sites measuring 2,400 sq ft for Rs15 lakh to Rs20 lakh.

However, the company, in a statement of objection filed in the high court, stated that it had acquired 2.04 acres of land in a prime location, without mentioning where. It also stated that it was continued to operate with the hope of starting other businesses, without mentioning what those businesses were.

Denying benefits to staff
The BEML management, which is supposed to look after the welfare of its employees, has been accused of depriving its employees of monetary benefits they genuinely deserved. According to labour department sources, a criminal case was filed against the BEML management for denying double wages to employees who worked overtime.

Camouflaging deeds
There is no provision for an executive director to be on the board of BECS as per the Karnataka Cooperative Societies Act 1959. However, BECS, with an apparently ulterior motive, made a provision for the post of executive director and entrusted him to execute most of the sale deeds of the sites at its layout in Thubarahalli, including the sale deeds of two sites allotted to Natarajan and Reddy.

Evading registration of will deed
Natarajan, who played a key role in purchasing agricultural land in his father’s name in violation of Section 79 A and B of the Karnataka Land Reforms Act, applied for conversion of the land for residential purpose on November 1, 2003. However, as per the mutation copy of the property, the will deed was not registered at all. The deed was made on a Rs10 stamp paper. Natarajan got the land converted for residential purpose on July 22, 2008 and then executed an agreement of sale of that land with one S Gouri Shankar of East Maredpally, Secunderabad, for Rs40 lakh on July 27, 2005. He accepted Rs20 lakh as an advance from Gouri Shankar.