"The civil case has been settled out of court and the settlement arrived by both the parties has been informed to the court," RGIDS Director and former KPCC General Secretary Hidur Muhammed said in a statement here today.
Dragging the Congress chief into the matter was a mala fide attempt with vested interest, he said.
Muhammed said RGIDS is a society registered under the Society Act and Sonia Gandhi was not its member directly or indirectly.
A construction firm in Kerala had filed the civil suit recently over alleged non-payment of dues to the tune of Rs 2.80 crore in the construction of the Rajiv Gandhi Institute of Development Studies complex by KPCC at Neyyar, 30 km from here.
KPCC President V M Sudheeran and Congress leaders Ramesh Chennithala, Oommen Chandy, P P Thankachan, Thennala Balakrishnan, Thalekunnil Basheer, C V Padmarajan and G Balachandran are its members.