The High Court of Kerala held that the state VACB is incapable of handling international transactions and the court in command orders CBI Investigation- Scam by titanium company
WP(C) NO. 20903 OF 2020
Case title: S Jayan v State of Kerala
Counsel for the petitioner: Advocates Suresh Babu Thomas, Nandagopal S.Kurup
Counsel for the respondents: Senior Government Pleader P.Narayanan, Central Government Counsel O.M.Shalina, Deputy Solicitor General S.Manu, Special Public Prosecutor Sreelal Warriar, Assistant Solicitor General P.Vijayakumar, Government Pleader Rajesh A and Public Prosecutor Rekha
CORAM: K.BABU, J
Dated: 14th day of November, 2023
Introduction
The High Court of Kerala contended the central government to be in charge to order the CBI in the matter to investigate the corruption assertion implying high officials of the titanium company for the charge of pollution abatement cum capacity expansion project involving above 256 crore rupees to M/s.Metallurgical & Engineering Consultants (India) Limited (MECON).
Facts of the Case
The petitioner pleaded that MECON was given the complete authority to enter into contract with Indian/foreign firms on behalf of the Titanium Company as per a letter of authority issued by the Titanium Company. MECON invited global tender on behalf of Titanium Company.
The contract price was approximately Rs.72 crores excluding taxes and duties, of which 1,08,34,938 Euros had already been paid. MECON entered into another agreement with an Indian company, namely V.A.Tech Wagbag, for setting up a Neutralization Plant (NP) at a cost of Rs.32.08 crores The Titanium Company incurred Rs.17.33 Crores towards import duty and other expenses. In addition, a sum of Rs.15 Crores was spent to set up the Neutralization Plant The Titanium Company was unable to incur such a huge additional financial burden.
The Deputy Superintendent of Police, VACB Special Unit 1, Thiruvananthapuram, registered an FIR alleging offences punishable under Sections 10, 11, and 13(1)(d) of the Prevention of Corruption Act, 1988 and Section 120B read with Section 34 of the Indian Penal Code.
The statement submitted by the senior government pleader is that the State Government decided to hand over the investigation to CBI as the case has interstate connections and international ramifications. It was submitted that VACB has limited resources to carry out an investigation involving MECON, a central public sector enterprise.
Analysis of the court
The court in command contended that VACB is incapable of conducting an investigation into money to foreign-based companies for the purchase of equipment by MECON.
respondent is directed to issue orders entrusting the investigation of VACB Thiruvananthapuram to the CBI. Respondents Nos.5 and 6 are directed to take over the investigation of Thiruvananthapuram. The CBI shall complete the investigation within six months from this date. The investigating agency is at liberty to approach this Court seeking an extension of time, if found necessary.
The above-mentioned writ petition is allowed.
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Written By
Kaulav roy chowdhury