CHENNAI, March 13: The Madras High Court has censured the former AIADMK government in Tamil Nadu led by Jayalalitha for causing the state a loss of Rs 80 crore in the grant of lease for black granite quarrying by violating tender norms.Dismissing a petition from former State Industries Minister M Chinnasamy for quashing the First Information Report (FIR) registered in the multi-crore rupee granite scam by the Crime Branch-Criminal Investigation Department of state police on March 14, 1997, in which Jayalalitha is the prime accused, Justice A Ramamurthy observed that the records indicated that the entire fraud had taken place with the full knowledge and involvement of the then industries minister.
The judge held that some mechanism should have been devised if leases were to be issued without following procedures. The state finance department alone was competent to advise on such matters, he said.
Stating that the joint vigilance commissioner in his report had said the losses could have been avoided byadopting an open tender procedure, Justice Ramamurthy observed this had, however, not been done and the Government Orders (GO) were issued with the motive of defrauding the exchequer and controlling the granite quarry operators.
The usual consultations that take place between the finance and law departments while incorporating certain rules were not made in the present case, he observed. Justice Ramamurthy said the FIR clearly established that Chinnasamy's contention that there was no specific allegation or averment in the FIR, except for the GO which accorded approval to sanctioning of the leases, was without basis.
The judge said from the commissioner's report that the losses were caused by violating tender procedures and not collecting the lease amount. Observing that the circulation note was completely silent about the negative opinion expressed by the then Advocate General (AG) on the renewal of leases, he said the then chief secretary had said, in a dissenting note on June 16, 1993, that the AG'sopinion deserved consideration.
Jayalalitha had, however, overruled the objections and ordered the renewal of nine leases in total violation of rule 10 of the secretariat rules of business, he observed. During examination of witnesses, it was revealed that one of them had given Chinnasamy Rs 2.35 lakh for a lease, the judge said and held that a public representative, as a minister, was not expected to act in such a manner. Only in the rarest of rare cases could a FIR be quashed and the present case did not fall into this category, he said.
Stating that only an investigation would bring out the truth, the judge observed there was prima facie material to proceed against the petitioner.
Meanwhile, a special judge trying corruption cases against the previous AIADMK regime framed charges today against former Labour Minister A M Paramasivam and his wife P Nallammal in the disproportionate wealth case against them.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
