Bengaluru: In a setback to state BJP president and former chief minister B S Yeddyurappa, the High Court on Wednesday refused to set aside the lower court order to investigate the allotment of Karnataka Housing Board (KHB) sites in Shivamogga.

Shivamogga-based advocate B Vinod had filed a private complaint before the Lokayukta against Yeddyurappa, his daughter S Y Aruna Devi and others. He had stated that when Yedyurappa was deputy chief minister he had abused his powers and got the sites allotted.

Vinod had mentioned that Yeddyurappa recommended to the then Chief Minister H D Kumaraswamy to allot the KHB sites to a few beneficiaries. Based on the complaint, the Shivamogga Lokayukta court had ordered an enquiry into these allotments.

The petitioners had contended that the Lokayukta Special Court had ordered investigation without taking into account the loopholes in the complaint.

The lower court over-looked the loopholes and took suo motu cognisance of the complaint to pursue with an enquiry. The petitioners had approached the High Court to set aside the order of the lower court which had taken cognisance of the investigation report.

While disposing of the petitions, Justice Anand Byrareddy directed the lower court to examine if sanction to prosecute Yedyurappa, who was then the deputy chief minister is required and, if the decision to allot sites was taken in official or personal capacity.

The High Court on Wednesday granted time to the state government to file its objections to the bail application filed by V Shashidhar, president, Akhila Karnataka Police Maha Sangha.

Shashidhar was arrested on the midnight of June 2, on the charge of instigating the police personnel to go on mass leave. His bail plea was rejected by the lower court.

Shashidhar, in his bail application, contended that he cannot be booked under the Indian Penal Code Section 124-A which talks about sedition, as he was not trying to instigate the police to commit any unlawful activity but trying to seek soulutions to the problems faced by the police personnel through an agitation.

He has contended that he never asked the police to go on mass leave and said that whoever could apply for leave and participate in the agitation could do so. Justice B Sreenivase Gowda granted time to the state government and adjourned the hearing to August 17.