Graphite case: Charges framed against Pillai, others

By Our Staff Reporter

THIRUVANANTHAPURAM, MARCH 20. Charges were framed by the Vigilance Special Court here today against the former Electricity Minister, Mr. R. Balakrishna Pillai, the former Kerala State Electricity Board Chairman, Mr. P. Kesava Pillai and the former Power Secretary, Mr. G. Gopalakrishna Pillai, in the second module of the Graphite case.

The Special Judge, Mr. K. P. Balachandran, charged the accused with entering into a criminal conspiracy some time before October 1984 to illegally sell electricity generated in the State to the Graphite India Ltd., a private company in Bangalore, by abusing their official position in violation of the provisions of the Electricity Supply Act, 1948 and the State Electricity Board Rules.

As per the alleged conspiracy, 1.66 crore units of electricity worth Rs. 19.02 lakhs were illegally sold to the Graphite during the period from June 1985, to April 1986, except for September 1985. At a time when there was acute power shortage in Karnataka, Graphite was able to derive pecuniary benefits to the tune of Rs. 19.02 lakhs and more.

While Mr. Gopalakrishna Pillai has been charged under IPC Sec. 120-B (criminal conspiracy), Mr. Balakrishna Pillai and Mr. Kesava Pillai have been charged with criminal conspiracy as well as under Sec. 5 (2) and Sec. 5 (1) (d) of the Prevention of Corruption Act. Since Mr. Gopalakrishna Pillai is at present the Chairman of the Public Service Commission, which is a Constitutional post, the sanction of the President of India is required to charge him under the P.C. Act.

The Vigilance had filed the chargesheet in the second module of the Graphite case on January 7, 1999. The court had rejected the petitions filed by the three accused questioning the maintainability of the prosecution case against them in the second module of the case.

The Graphite case is in three modules, the first two relating to the sale of KSEB power to the Graphite and the third to the diversion of NTPC power to the Graphite. The first module relates to the October 1984 - May 1985 period, the second to June 1985 - April 1986, except for September 1985 and the third to August 1986 - March 1987.

Mr. Balakrishna Pillai and Mr. Kesava Pillai had been convicted by the Special Court in May 1996 in the case relating to the first module. The accused have appealed against the order. The chargesheet relating to the third module is yet to be filed.

The fraud came to light in June 1987 when the then Power Minister in the LDF Government, Mr. T. Sivadasa Menon, received a letter from the Karnataka Government requesting him to consider the request of the Graphite India, for continued supply of power from the KSEB.

The letter said the Graphite India had been getting two million units of power regularly and the supply had been disrupted following a change of Government. Mr. Sivadasa Menon found that there was no record at all in the KSEB that power was being sold to the Graphite India. He referred the letter to Mrs. K. R. Gouri, who was in charge of the Vigilance portfolio and she ordered an inquiry into the matter.

The prosecution has furnished 105 witnesses and 245 documents in the case. All the three accused were present in the court today where a crowd had gathered.

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