Federal agency not to probe controversial Kerala deal

Kochi: India's top federal investigating agency yesterday said it did not intend to probe a controversial deal that caused an alleged loss of Rs3.74 billion (Dh13.8 billion) to Kerala's state-run power utility.

The case involves a deal between the Kerala State Electricity Board (KSEB) and SNC Lavalin of Canada over a contract for the renovation and modernisation of Pallivasal, Sengulam and Panniar hydroelectric projects.

In an affidavit to the Kerala High Court, the CBI stated that there was no need for a CBI enquiry as the vigilance probe on the deal was going on.

In a petition filed earlier, T.P. Nandakumar, Chief Editor of Crime magazine, had sought a CBI probe into the case. He submitted that the state's accountant general had found that the KSEB had lost Rs3.74 billion in the deal.

The court subsequently directed the state to hand over the files regarding the case to the CBI. Later, Nandakumar had sought contempt proceedings against T. Vikram, the CBI's superintendent of police, for not beginning the investigation.

But a division bench of the high court has dismissed the petition by accepting the CBI contention that the earlier court directive was to the government to hand over the files to the CBI and there was no directive to the CBI to start investigation.

Meanwhile, the CBI yesterday conducted searches in four places, including the residences of two officials of the Velloor-based Public sector Hindustan Newsprint Ltd over the import of old and waste newsprint for the HNL's de-inking plant.

The searches were on the residential premises of Govind Raj, HNL Senior Manager (Purchase), and Bhasker Pillai, Manager (Purchase), at Velloor in Kottayam district, CBI sources said here.

Searches were also carried out on the premises of Kochi-based Fast & Safe Transports which had got the tender for supplying old newspapers and magazines and the residence of one Sunil Bose, who is allegedly involved in the case, the sources said.

According to the sources, Bose is presently abroad. The transporting company had in turn tied up with the US-based Greenworth Consulting for the supply.