Ex-BJP MLC DS Veeriah withdraws plea to quash complaint in `47-cr DDUTTL scam

Bengaluru : In a significant development, former president of the D Devaraja Arasu Truck Terminal Limited (DDUTTL) and ex-BJP MLC DS Veeriah has withdrawn his petition from the Karnataka High Court, which sought to quash a complaint filed against him in connection with a Rs.47.10 crore scam. The complaint was lodged by DDUTTL Managing Director CN Shivaprakash, who alleged financial irregularities during Veeriah’s tenure.

The single-judge bench, headed by Justice S. Vishwajit Shetty, was scheduled to hear Veeriah’s plea, which aimed to cancel the complaint filed at the Wilson Garden police station. However, Veeriah’s legal team withdrew the application, citing that the trial court has not yet examined the charge sheet submitted by the Criminal Investigation Department (CID) in the case. Veeriah was initially arrested on July 12 by the CID but was later granted bail by a special court.

The case stems from allegations of fraudulent activities during Veeriah’s term as Chairman of DDUTTL. The complaint, filed by CN Shivaprakash, claims that Veeriah and other officials were involved in creating fake documents to execute development projects on a piecemeal contract basis, bypassing regulations stipulated under the Karnataka Transparency in Public Procurement Act (KTPP Act). According to the complaint, these contracts involved repair and maintenance work across various truck terminals and land owned by the company, amounting to ₹47.10 crore.

Shivaprakash took charge as the Managing Director of DDUTTL on November 11, 2022, and subsequently identified multiple discrepancies in the company’s financial transactions. Following a thorough review, he discovered inconsistencies in the costs associated with the development projects. Shivaprakash highlighted these issues in a series of detailed reports, which were submitted to the Secretary of the Department of Transport on three occasions in 2022 and 2023, calling for action against the suspicious practices.

Following the submission of the reports, Shivaprakash officially lodged a complaint against Veeriah, leading to an investigation by the CID. Veeriah, who faced arrest earlier this year, approached the High Court to seek cancellation of the complaint, arguing that there was no basis for the charges. However, with the charge sheet now being processed by the trial court, his legal team chose to withdraw the petition, potentially signaling a legal strategy to address the issue in the trial court directly.

The investigation revealed that during Veeriah’s presidency, DDUTTL executed several contracts under suspicious terms, without adhering to standard protocols set forth by the KTPP Act. The allegations suggest that fake documents were created to facilitate these contracts, leading to significant financial discrepancies. The detailed reports compiled by Shivaprakash pointed to possible misappropriation of funds, amounting to ₹47.10 crore, which raised alarms about the integrity of DDUTTL’s operations during Veeriah’s tenure.

In his complaint, Shivaprakash alleged that contracts for maintenance and development work were awarded without proper tendering or transparency, violating procurement rules.

These actions, according to the complaint, resulted in severe financial mismanagement and potential misuse of public funds.

The CID has submitted a charge sheet outlining the details of the alleged scam, and the case is now moving through the legal system. With Veeriah’s withdrawal of the plea from the High Court, the focus is expected to shift to the trial proceedings, where the evidence collected by the CID will be examined. Legal experts believe that this withdrawal might be a strategic move to allow the case to be heard in detail at the trial level, where Veeriah can contest the charges more robustly.