Justice P Ubaid also upheld the discharge of the first and eighth accused by the lower court in the Rs 374.50 crore graft case, rejecting the CBI's plea that their full-fledged trial was necessary to prove the conspiracy charge against them.
The judge noted that it was a Cabinet approved project and "it would be unjust and illegal to pick and chose" the then Electricity Minister Vijayan "and prosecute him for the wrong or illegality committed by the Kerala State Electricity Board (KSEB)".
The court, however, allowed the CBI petition in part by setting aside the discharge of three other accused, who were officials of KSEB.
Vijayan, who was the seventh accused in the case, said the verdict clearly vindicated CPI(M)'s stand that it was a 'politically motivated' case to tarnish the party's image at the national level.
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The party Politburo said in a statement that the case was sought to be used to "besmirch" the image of Vijayan and the party and added the court verdict has "effectively exposed these efforts".
The deal was first signed in February 1996 as consultancy contracts, but after Vijayan became the power minister in the then LDF regime headed by E K Nayanar, they were changed to supply contracts that provided for purchase of machineries from Canada.
There were nine accused in the case, including the Canadian firm and one of its senior executives. However, as the two did not appear in the court, the case was later split and proceedings began against the other seven accused.
The judge in his order said: "It is pertinent to note that the CBI has not alleged anywhere in the final report or other materials that the seventh accused had derived or obtained any sort of benefit out of the deal between the SNC Lavalin and the KSEB.
"I find that the CBI picked and chose one Minister alone for prosecution, on an allegation of conspiracy. There is no explanation why the CBI did not probe into the failure on the part of the other ministers who succeeded the seventh accused," the Judge said.
He noted that the cabinet had approved the proposal based on the reports submitted by the KSEB.
"Thus it was a Cabinet decision... It would be unjust and illegal to pick and chose the Electricity Minister and prosecute him for the wrong or illegality committed by the KSEB," the judge said.
The CBI, which had filed the charge sheet in the case, had argued that there was sufficient evidence to prove the charges against the accused.
The special judge had ruled that the CBI had failed to prove the charges of conspiracy and corruption levelled against Vijayan and other accused.
Claiming that the conspiracy was hatched at different stages in awarding the contract, the CBI had assailed the lower court order.
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