The Congress government in Kerala has decided to withdraw the palmolein import case. The government will inform the Vigilance Court in Thrissur,where trial is pending,its decision not to pursue the case.
In 2005,the then government led by Oommen Chandy had decided to drop the case,but the CPM government went ahead with the prosecution plan. Congress leader K Karunakaran was the first accused in the 1992 case of import of palmolein in which the government lost Rs 2.32 crore.
In 2011,the vigilance court ordered further probe to ascertain whether CM Chandy,the finance minister when the import deal was struck,had any role. Chandy had dropped the vigilance portfolio to facilitate further probe which later gave him a clean chit. CPMs Kodiyeri Balakrishnan said the Opposition would move court against the decision.