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The decision was taken at a meeting of the Cabinet, chaired by Chief Minister Siddaramaiah.
In the “partial” report submitted on August 31 in 11 volumes, the commission examined the expenditure to the tune of Rs 7,223.64 crore, Law and Parliamentary Affairs Minister H K Patil told reporters later, adding, “they have not pinpointed that so much (scale) is misappropriation.”
He, however, said the commission has recommended recovery of Rs 500 crore.
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The Minister said based on the report, as criminal intent is also involved, it has been decided to constitute an SIT, and also a Cabinet sub-committee for “review and monitoring.”
It has also been decided to begin the recovery proceedings immediately and to black list those companies or establishments involved in the wrongdoing.
“Wherever the criminal element is there, SIT will naturally look into it. Apart from that, the Cabinet sub-committee will be assisted by relevant officers to go into details of other malpractices. The details about those involved are not there in this report and it may come in the final report,” Patil added.
The Cabinet also decided withdraw 43 criminal cases registered in various police stations in the State.
It also gave its approval for extending by an year the term of the SIT constituted in the Karnataka Lokayukta for investigating the illegalities in mining, with a probe into several cases still pending, he said.
Administrative approval has also been given for construction of “Reshme Bhavana” at an estimated cost of Rs 527.50 crore on 4.25 acres of land owned by the Department of Sericulture at Okalipuram here with entire investment by Karnataka State Minerals Corporation Limited (KSMCL).
The Cabinet also gave its nod for construction of hi-tech Cocoon market at Shidlaghatta in Chikkaballapura district at an estimated cost of Rs 200 crores.
It also decided to create Karnataka Skill Development Corporation under Companies Act, 2013.