The Karnataka High Court has rejected bail application of former Industry Minister Katta Subramanya Naidu and others in the multi-crore land denotification case. Single Judge Bench of Justice V Jagannathan gave four reasons to reject the bail application. The Jugde pointed out to the magnitude of the scam valued at around 111 crore rupees. He said, gravity of the case is so high that the petitioners Katta and Managing Director of Itaska company Srinivas cannot be released on bail. The Judge also pointed out to prima facie evidence produced by Lokayuktha in this case where denotified land was given to a company for starting a Special Economic Zone using forged documents. The Lokayuktha report has also pointed out that a non existing company named in the project had the address of a petrol bunk owned by wife of Katta Naidu. Justice Jagannathan also observed that bearer cheques worth crores were issued by the accused to the dead and mentally unsound persons during their business transactions. He also added that 72 villagers have complained that the compensation paid for acquiring their land for the project has not reached them at all.