It was submitted that state incurred heavy loss due to the contract for modernisation of three hydro electric project awarded to Canada-based SNC Lavalin during the then LDF regime in 1996.
Earlier, the court admitted the revision petition filed by CBI and activist T P Nandakumar challenging the discharge of the accused by a CBI Court in Thiruvananthapuram recently.
The state alleged that no feasibility study was conducted prior to award of contract at "exorbitant" rate, causing heavy loss to the Kerala State Electricity Board (KSEB). The total loss calculated is Rs.266.25 crore on account of high rate of equipment services.
It was further alleged that backing out of commitment made by SNC Lavalin, the state government could not establish a full pledge cancer centre at Thalasserry.
The CBI's case was that Vijayan, who was Power Minister in the state in 1996, had full knowledge about the "clandestine" dealings that the other accused had with SNC Lavalin while awarding contract for renovation of three power stations in the state.