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Money Laundering Trusts and BSY

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One should appreciate Mr. Yeddyurappa for never say die. He has come up in BJP the hard way from the RSS cadres. He has a solid following of a strong Lingayat community. It has taken an advanced age of 70 to reach high position as the CM of the state of Karnataka.

The CBI is investigating charges of bribery against Yeddyurappa on a Supreme Court directive. This includes payments made by a Jindal group company to a trust run by Yeddyurappa’s sons and a mining baron, R Praveen Chandra, to firms owned by the two brothers in return for favors. The quid pro quo was grant of mining licenses and de-notification of prime land acquired in violation of rules. The CBI judge rejected the bail pleas, citing the magnitude of the case and also to ensure free and fair probe. The 75-page order said the court cannot discount the CBI’s fears that Yeddyurappa, an ex-CM, and Raghavendra, a sitting MP, were “influential persons”. “But mere rejection of anticipatory bail cannot be a ground for arrest,” the judge said.  

Money Laundering is usually described as having three sequential elements

  1. Placement involves
    1. Physical movement of  Currency to a place
    2. Conversion of money in to assets
    3. Transferring the assets to  less conspicuous agencies
  2. Layering by multiple complex financial transaction
    1. Wire transfers
    2. Monitory investments
  3. Integration
    1. Float apparently legitimate businesses for converting
    2. Unfortunately the trusts are serving the unholy purpose

Are Trusts a misnomer?

 

Comments

psaram42's picture

Other firms like JSW affiliates have also made huge transfers

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Four associate companies of JSW Steel Ltd paid large sums to the family trust of former Karnataka chief minister B S Yeddyurappa, far beyond what their financial health permitted, documents before the Supreme Court show.

At the same time, JSW gained massive financial advantage out of a modification to the MoU between the company and state government undertaking Mysore Minerals Limited over the joint-venture Vijayanagar Minerals Private Limited.

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