Anti-Corruption Bureau officials on Tuesday arrested a KIADB officer and seven others as they were sharing commission money collected from farmers, who gave their land towards the Sompura industrial area development.
On September 20, the government released Rs 50 crore to be transferred to the farmers' bank accounts through RTGS. However, officials of the Karnataka Industrial Area Development Board demanded commissions from the farmers to release this amount.
Following a tip-off, an ACB team, headed by S P Jinendra Khanagavi, raided the KIADB office 'Khanija Bhavan' on Race Course Road and arrested L Srinivas, senior assistant of the board, and seven middlemen while they were sharing the commission. The anti-graft agency officials recovered Rs 12.90 lakh and 13 blank cheques. The team also recovered three cheques and Rs 67,000 from Srinivas.
According to a senior police officer, the KIADB had acquired 800 acres at Sompura near Dobbspet and the farmers were to be given compensation for the land acquired. But the officials had demanded money from the farmers to release the amount through agents. They were collecting black cheques from the farmers, and those who refused to give the commission were made to run from pillar to post to collect the compensation.