Bangalore, Dec 7 (PTI): Continuing its tirade against the family of former Prime Minister H D Deve Gowda, the Yeddyurappa government today alleged that the JDS chief's daughters got sachet supply contract from state-owned Karnataka Milk Federation and caused about Rs 2.13 crore loss.

Former KMF chairman and Deve Gowda's son H D Revanna, however, rejected the charge as "baseless" and dared the BJP government to conduct an inquiry into it. Karnataka Labour minister B N Bacche Gowda alleged that Gowda's two daughters were awarded the contract to supply milk sachets to KMF by their brother Revanna when he was the Chairman of that body from 1997 to 2001.

The minister was addressing a press-conference here. An inquiry conducted into the KMF irregularities has brought this fact to light, the minister said while describing the incident as an act of "nepotism" by Revanna.

Bacche Gowda, once a right hand man of Gowda while he was in JDS, said the KMF entered into an agreement with Reliance for supplying raw materials for manufacture of sachets.

Gowda's daughters floated a firm 'AMSA' and were awarded the same contract by securing a letter from Reliance that this agency can also supply the raw material to KMF, he claimed.

The auditing of accounts of KMF has been taken up currently and on receipt of that report the Government would order a Lokayukta probe into the irregularities, he said. He also claimed that a pouch film plant set up by KMF in 1997 with Rs 4.22 crore was sold to a private firm within forty four days of commencing production.

Speaking to PTI over phone, Revanna said he had not awarded any supply contract to his sisters, which they secured by participating in a tender floated by Reliance. Revanna maintained that AMSA even today continues to supply sachets to KMF and asked "why KMF has not suspended the contract".

An inquiry held by the government earlier into the same issue failed to establish any irregularity, he said. "There is a committee to award contracts in KMF and the chairman is not the head of that committee," Revanna said.

Meanwhile, Political Secretary to the Chief Minister, B J Puttaswamy charged that former Chief Minister H D Kumaraswamy purchased 46 acres of land near Bidadi in the name of his mother-in-law.

Kumaraswamy's mother-in-law is a non-agriculturist and has violated Karnataka Land Revenue Act provisions 79 (a) and (b), he alleged. The Assistant Commissioner of Ramanagar has been issuing notices on Kumaraswamy's mother-in-law ever since the purchase, but she had not appeared for inquiry so far.

Puttaswamy demanded that this purchase be declared null and void and land confiscated by the government.