Allows Kerala to go ahead with trial In `2.8-Cr scam

NEW DELHI: The Supreme Court on Tuesday allowed the Kerala government to go ahead with the trial in `2.8-crore palmolein oil import scam, involving PJ Thomas, head of the country’s top anti-corruption watchdog, the Central Vigilance Commission (CVC).

A bench, comprising Justices Aftab Alam and RM Lodha, gave the green signal to resume the trail in the case. The development is certain to add to the troubles of Thomas, whose appointment as the CVC had invited a dissenting note from the Leader of the Opposition Sushma Swaraj. His continuation on the constitutional post has become increasingly untenable. The two-judge SC bench vacated its stay on the trial after treating the appeal of former Kerala chief minister K Karunakaran as “abated” in view of his death on December 23.

The Kerala government had earlier moved the apex court seeking vacation of its stay on the trial in the palmolein oil import case in which Thomas is an accused.

The apex court had on August 3, 2007, stayed proceedings in the case before a designated CBI court in Kerala. There were eight accused in the Palmolein import case. The chargesheet in the case was filed in 2000 against Karunakaran and seven senior state government officials, including Thomas, who was then Kerala food secretary. The then chief secretary of the state, besides additional secretary and Kerala State Civil Supplies Corporation’s managing director GG Thomas are named as accused in the FIR.

The case pertains to the import of palm oil from a Singapore firm, which was allegedly done at prices higher than the international rate. The Karunakaran cabinet had approved import of 15,000 tonne of palm oil at a rate of $405 per tonne whereas the market price was $392.25 per tonne. As secretary, food and civil supplies, Thomas had issued the government order for the import, which caused a loss to the state exchequer.

In November, 2005, the state government had decided to move the trial court to withdraw the prosecution against Karunakaran. However, in 2006, it cancelled its decision for withdrawing his prosecution, stating that there was no such intention and favoured going ahead with criminal proceedings against all the eight accused, including Thomas.