In a politically significant move, the Congress-led UDF Government in Kerala has decided to withdraw the two-decade old palmolein import deal corruption case, which had marred the careers of late Congress veteran K Karunakaran and former CVC P J Thomas, who figured as accused in the charge sheet.
According to official sources here, an order in this regard had already been issued by the Home Secretary reviving a decision taken by UDF Ministry in 2005, which was reversed by the LDF Government that came to power a year later.
The Government would file a petition in the Vigilance Court in Thrissur, where the case is pending, seeking withdrawal of prosecution proceedings against all the accused holding that the import of palmolein did not cause any loss to the exchequer or anyone made unlawful gain out it.
The Government would submit in the court that the allegation of criminal conspiracy or irregularities against the accused are not sustainable.
Reacting to the development, CPI(M) leader Kodiyeri Balakrishnan said the opposition would challenge the government move in the court.
Apart from former Central Vigilance Commissioner Thomas, IAS officer and Sports Authority of India (SAI) Director General Jiji Thomson and former Civil Supplies Minister T H Musthaffa are among the eight accused in the case.
The case pertained to alleged corruption in import of palmolein through a firm in Singapore when Karunakaran was Chief Minister in 1992. Thomas was Civil Supplies Commissioner and Thomsan M D of the state Civil Supplies Corporation.
The case had haunted Karunakaran during his last stint as Chief Minister with the opposition as well as rivals in the Congress seizing on the issue to run him down.
Thomas, who stepped down as CVC two years back in the backdrop of the case, figured as the eighth accused.
The vigilance inquiry into the deal was ordered by the LDF ministry led by E K Nayanar in 1999.
A move was made by the Oommen Chandy ministry in 2005 but it was reversed by the LDF Government headed by V S Achuthanandan that came to power in 2006.
The case also took another political turn with Achuthanandan seeking action against Chandy, who was the finance minister in 1992 when the cabinet approved the deal.
However, the Kerala High Court and Vigilance Court dismissed the petition in this regard.
