HC rejects Kerala govt plea against CBI probe into Life Mission project

In a setback to the LDF government,theKerala High Court on Tuesday dismissed a petition challengingthe CBI investigation into alleged irregularities in ''LifeMission'', a state housing project envisaging total housing forthe homeless.

''The instant case would reveal a high profile intellectualfraud played in furtherance of MoU so as to avoid audit by CAGand to get kickbacks and gratifications,'' the court said.

The CBI had filed an FIR in a court here under Section120 B of the IPC and Section 35 of the Foreign Contribution(Regulation) Act, 2010 on a complaint by Congress MLA AnilAkkara, listing Santhosh Eappen, Managing Director of UnitacBuilder, as main accused and Sane Ventures as second accused.

The Life Mission CEO and Eappen had moved separate pleasin the High Court, submitting that the FIR was ''illegal,arbitrary and nothing but an abuse of the process of law andis, therefore, liable to be quashed''.

Noting that the MoU between LIFE Mission and UAE RedCrescent was to provide AED 10 million financial aid toconstruct housing units and a health centre for victims of therecent Kerala floods, the court said no subsequent agreementswere entered into between the fund provider and the acceptor.

''The very nature of the mischief done in furtherance ofMoU would suggest involvement of highly educatedprofessionals--a mastermind behind it'', the court said.

As per the MoU, UAE Red Crescent agreed to provide AED 10million,of which 7 million was to build homes for floodvictims and AED 3 million for construction of a health centre.

The court found fault with two subsequent agreementsentered into by Consular General of UAE, Thiruvananthapuramand Unitac Builders and Developers and Sane Ventures LLP,headed by Santhosh Eappen.

''It is against the understanding arrived at under theMoU signed by the CEO of LIFE Mission on one part with UAE RedCrescent on the other part.

Neither the UAE Red Crescent nor the state government orLIFE Mission is a party to the two subsequent agreementsentered into for implementation of MoU signed by LIFE Mission(state government with UAE Red Crescent'', the court said.

On the agreement signed between the UAE Consular Generaland Unitac Builders and Developers and Sane Ventures LLP toconstruct a building in state government owned property, thecourt said it was suspected to be meant to divert the funds toa third person without intervention of either the governmentor UAE Red Crescent by avoiding CAG audit to get kickbacks andgratifications.

The court said it is seemed to be so unfortunate that theagreements were accepted by the CEO, LIFE Mission.

''The typical nature of the facts involved in the instantcase would reveal a high profile intellectual fraud played infurtherance of MoU so as to avoid audit by CAG and to getkickbacks and gratifications'', the court said.

In this case, it appeared that all these mischief weredone during implementation of part of project ''LIFE Mission''by the permanent members attached to it--the IAS officers withSwapna Suresh, Sandeep Nair, Sarith, Santhosh Eapen and theirallies,'' the court said.

It said Eappen's admission about the involvement ofkickbacks and gratification would itself show his alleged rolein the commission of offence and he cannot escape from theliability as he is well aware of the MoU and the understandingarrived at by the UAE Red Crescent with the LIFE Mission.

''It would suggest that he had knowingly entered intoagreements overturning the MoU and diverted the foreigncontribution to his own hands and played his own role in thegame by evading audit by CAG and the procedure and legalformalities to be complied with in awarding the governmentwork,'' it said.

The court said the foreign contribution provided by UAERed Crescent was effectively diverted by manipulating twoagreements and inducting strangers, without the juncture offund provider and the beneficiary so as to get kickbacks andwith the active connivance and help of IAS officials connectedwith the project, including the CEO of LIFE Mission, who hadprovided and offered all sorts of help and facilitated it.

''The extent of foul play by these officials infacilitating creation of agreements, induction of third personinto the issue so as to obtain kickbacks by avoiding audit byCAG is prima facie evident and clear from the above saidconduct and hence neither Santhosh Eapen nor the officialsunder the LIFE Mission who had done all these mischief canescape from criminal liability,'' the court said.

The court, however said, mere fact that policy decisionswere taken by the Chief Minister, the ministers or theLegislature may not by itself be sufficient to extend criminalliability against them for the wrong done by the non-politicalexecutive attached with the project and their allies.

''Hence it is not permissible to extend criminal liabilityon the political executive merely because they have taken apolicy decision and proactive steps in its implementation''.

The alleged FCRA violation and corruption in the projecthad snowballed into a major political issue with oppositionparties alleging that Swapna Suresh, a key accused in the goldsmuggling case, had admitted before an NIA court that she hadreceived Rs 1 crore as commission from the project.PTI COR TGBAPRADMINISTRATOR TGBAPRADMINISTRATOR