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This is an archive article published on December 11, 2004

Liquor scam: SC vacates stay on HC order

Supreme Court today vacated the stay it had ordered on Monday, on the Andhra Pradesh High Court’s decision to quash a criminal complain...

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Supreme Court today vacated the stay it had ordered on Monday, on the Andhra Pradesh High Court’s decision to quash a criminal complaint, against former CM Chandrababu Naidu and others, into the purchases of liquour, at double the actual price, by the Andhra Pradesh Beverages Corporation Ltd (ABPCL).

A bench comprising Justice K.G. Balakrishnan and Justice Tarun Chatterjee recalled its order when senior counsel Altaf Ahmed and Harish Salve appearing on behalf of former AP minister Tummala Nageswara Rao submitted that there was no stay petition in the Special Leave Petition (SLP) filed by Krishna Kumar Goud challenging the AP High Court order. And that the order of the High Court was passed over a year ago.

The counsel for Veerabhadraiah, former Managing Director of the APBCL, Narsimha, concurred with the submissions. The complainant had contended that the state exchequer had paid Rs 550 crore in excess during 1977-2000 because of purchase of liquour at inflated prices. Conferring pecuniary advantage on someone also amounts to corruption, the complainant had contended before the Special Judge. The Special Judge had then ordered an investigation which was stayed by the AP High Court.

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When the SLP came up in the SC the same bench stayed the order of the High Court. With today’s order, High Court order comes into operation, which in effect means that the investigation into the alleged scam stays.

However, the proceedings in the SLP will continue after the notices are served and replied.

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