The Kerala High Court will today start hearing on a two-decade-old corruption scam involving an alleged loss of Rs3.74bn public money in which a lower court had acquitted Chief Minister Pinarayi Vijayan without trial.
The Central Bureau of Investigations (CBI) appealed to the higher court stating that the designated court here did not even go into the details of the case before letting off the Communist Party of India (Marxist) leader.
They accuse Vijayan of unduly favouring SNC-Lavalin, disregarding a state-run firm’s proposal, in exchange for other favours to award a renovation contract while he was state power minister in 1997.
However, the CBI could not summon officials of the Canadian engineering and construction major listed as defendants in the case or produce evidence to prove the CPI (M) strongman got monetary benefits in the state’s biggest corruption scandal.
The CBI claims Vijayan and others hatched a criminal conspiracy to award the contract for the renovation and modernisation of the Pallivasal, Sengulam, and Panniar hydroelectric projects at an exorbitant cost, without inviting tenders, violating rules.
It contends that the special court had abused its authority by discharging him and extending its benefit to others who had not even filed discharge petitions. The court ignored “the criminality of the contract awarded dishonestly and fraudulently,” at his behest, the CBI claimed.
Analysts are closely watching the developments as an adverse decision could seal the fate of the 71-year-old’s tenure in office that started barely nine months ago. Vijayan has in the past spearheaded campaigns against political rivals even on court observations.
The chief minister recently returned to the state capital after a four-day Bahrain visit.
Justice P Ubaidulla, considering the CBI appeal, had earlier said he would expedite the case in view of its importance, though review petitions as old as 15 years are still pending disposal.
The lower court on November 10, 2013, closed the case before beginning trial ruling that the CBI had failed in gathering evidence to prove that Vijayan was bribed to see the deal through.
The CBI challenged this in the high court and the plea had been pending along with several other review petitions till the state government headed by Congress leader Oommen Chandy filed an appeal, stating that the Marxist leader was the dealmaker who should be held responsible.
Vijayan is the seventh defendant while the Canadian firm and its former official, Klaus Triendl, are yet to respond to the summons from the court. Six former officials are the other defendants.
Though the previous Congress government had signed the memorandum of understanding with the Canadians, Vijayan converted it into a fixed price contract that included the supply of equipment and made them agree to fund a Rs980mn cancer centre in his hometown of Thalassery.
But the aid stopped after an initial payment of Rs120mn in the absence of any particular contract and the alleged disinterest shown by his successors after he took over the reins as party secretary midway. Besides, the Canadians developed cold feet as no more contracts were forthcoming.
The CBI accuses Vijayan of undue haste and personal interest in the deal overlooking better options at home. He allegedly colluded with others in the criminal conspiracy to favour the company at a huge cost to the exchequer.
The CBI also cites accounts to claim that a huge amount of public money was wasted and alleged Vijayan flouted all norms, influenced federal agencies, overruled objections from officials and kept the Cabinet in the dark in his over-enthusiasm to clear the deal.
Vijayan has been credited with increasing the power board’s installed capacity in a major way in the shortest time for any power minister that the state has ever seen. However, his style of functioning has angered the bureaucracy.
An adverse decision could seal the fate of the 71-year-old chief minister’s tenure that started barely nine months ago, feel analysts.
