THE SCANDAL-TAINTED chief minister of an Indian state on Thursday(July 28) offered to quit following charges he was involved in a Rs 160.8 billion (£2.2bn/$3.6 bn) mining fraud, his party said.
A spokesman for the opposition Bharatiya Janata Party (BJP) said in the capital New Delhi that BS Yeddyurappa, head of the BJP government in the state of Karnataka, would resign.
The BJP leadership earlier, on Thursday (July 28) "unanimously decided" for a change in the BJP leadership in the resource-rich southern state.
"From what I believe is that he has offered to resign but has not actually handed over his resignation to the Karnataka Governor," said BJP spokesman Rajiv Pratap Rudi.
"But he has reconciled to the fact that he has to resign," Rudi added.
Yeddyurappa was named Wednesday(July 27) in a report published by the southern state's ombudsman who was investigating corrupt mining practices.
Judge Santosh Hegde accused the chief minister of enabling illicit mining of iron ore in Karnataka, which cost the public exchequer Rs 160.8 bn between 2006 and 2010.
He recommended the prosecution of Yeddyurappa under the Prevention of Corruption Act for his "direct involvement" in the scam.
The mining graft is the latest in a slew of corruption scandals in India, which is still reeling from the allegedly fraudulent sale of telecom licences in 2008 estimated to have cost the country up to £24.49/ $40 billion.
The ombudsman's explosive findings have cast a shadow on the BJP, which has been leading an anti-graft campaign nationally against the Congress-led government of Premier Manmohan Singh.
Hegde said his probe uncovered "involvement of some 100 mining companies, about 600 officials, powerful politicians including the chief minister".
The report said the federal and state government exchequers lost money due in the form of royalties, central excise duties, value-added taxes and other levies.
The report also said Yeddyurappa’s family, including one who is a BJP member of the national parliament, benefited from the fraud.
BJP spokesman Rudi tried to make light of the problems facing the Hindu nationalist party. "This is nothing unusual, it happens in politics," he commented.
