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This is an archive article published on November 6, 2013

Pinarayi Vijayan,6 others discharged in Lavalin case

Court says prosecution failed to establish case against accused.

A CBI court here on Tuesday discharged CPM state secretary Pinarayi Vijayan and six others from the list of the accused in the SNC Lavalin corruption case.

The court decision to drop seven accused persons without a trial has left the prosecution in a fix. Others remaining as accused in the case are Lavalin Company and its vice-president Claus Trendl,but the CBI has not served the court warrants to the firm and its senior executive so far.

The SNC-Lavalin case concerns the repair and revival of three power projects in Kerala during 1995-1997. The charge against Vijayan and others accused was that they had entered into a deal with the Canadian firm,causing a loss of Rs 374.50 crores to the State. Besides Vijayan,six others discharged in the case were senior executives of the Kerala State Electricity Board.

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CBI Judge R Raghu said the prosecution had failed to establish dishonest and fraudulent intentions,abuse of official position and cheating against the accused. “Administrative lapse or blunder is not indictable under our penal statutes and for that reason that is not the domain of this court to ponder over and render a finding. The prosecution has no case that any of the accused obtained any pecuniary advantage,” the court said.

“The prosecution is simultaneously attempting to brand the act of awarding supply contract a dishonest and fraudulent act,and also an act taking into consideration the offer for grant for establishing the cancer hospital,a laudable object,involving public interest. These allegations are mutually contradictory and destructive.’’

The court said the charges against the accused were groundless. CBI sources said the agency would appeal agai-nst the special court’s verdict.

Acquittal in the case came as a major relief for Vijayan and would mark the beginning of a crucial phase in CPM politics. Although the CPM had termed the case politically-motivated,the scandal had eclipsed Vijayan’s bid to enter parliamentary politics.

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While the CPM has so far not been keen to topple the Congress-led government weakened by internal squabbles,prospects of the CPM changing its strategy have brightened with Vijayan getting a clean chit.

The court verdict would also spell trouble for Achuthanandan,who was suspended from the party politburo for taking anti-party stand in the case. Vijayan has emerged stronger at a time when the demand to remove Achuthanandan as Opposition leader is pending before the central leadership.

Addressing the media after the verdict,Vijayan said truth had come out. Vijayan said investigating agencies should not be used for settling political vendetta and the practice of fastening leaders to never-ending cases should be stopped.

Reacting to the verdict,Vijayan’s rival Achuthanandan said,“I welcome the court decision which has made my stand in the Lavalin case irrelevant.’’ Congress state president Ramesh Chennithala said the court verdict was unusual.

Tracking Kerala’s 18-year-old case

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Lavalin case pertains to renovation of 3 hydel power stations in Idukki district.

August 1995

* Kerala State Electricity Board (KSEB) inks Memorandum of

Understanding with SNC Lavalin Inc,Canada,for rehabilitation of the existing facilities. At the time,

A K Antony was the Chief Minister and G Karthikeyan was the power minister.

February 1996:

* MoU converted into consultancy contract to provide technical services on management,engineering,procurement and construction supervision.

May 1996:

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* Pinarayi Vijayan becomes power minister after which Lavalin agreed to mobilise funds for the construction of a hospital,Malabar Cancer Centre (MCC),in north Kerala.

2001:

* State Assembly Subject Committee finds the deal with Lavalin led to huge losses.

* The MCC was to cost Rs 103.30 crore,of which Rs 98.30 crore was to be mobilised by Lavalin and the rest by the state government. But the actual contribution made was found to be only 8.98 crore.

2002:

* Congress government orders Vigilance probe

2005:

* CAG report says the state lost

Rs 374.5 crore in the deal

2006:

* The Vigilance submits its preliminary report in court,arraigning eight people as accused.

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* The Vigilance bid to file the FIR in court,without informing the government,kicked up a controversy. CM Oommen Chandy announced the case will be handed over to the CBI.

May 2006:

* LDF government assumes office and the case goes to the backburner.

2007:

*High Court asks the CBI to probe the case.

January 2009:

* CBI files its final report and names 11 accused. The CBI found that Vijayan had shown unusual enthusiasm in the deal.

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