Date:09/09/2004 URL: http://www.thehindu.com/2004/09/09/stories/2004090905750400.htm

Tamil Nadu

Kannappan's discharge plea dismissed

By Our Special Correspondent

SALEM, Sept. 8. The chief judicial magistrate, G. Venugopal, today dismissed a discharge petition filed by former minister, Kannappan, in the multicrore `Highways scam' case.

Mr. Kannappan, cited as the prime accused, however, did not appear before the court. The magistrate dismissed the petitions of 25 others, who had also filed the discharge petitions, saying a prima facie case was established against the accused. Framing of charges would be taken up on September 29.

All accused were already served with copies of charge sheets and documents.

According to L. Panneerselvam, Deputy Superintendent of Police, Salem wing of the Directorate of Vigilance and Anti-Corruption (DVAC), during 1992-93, the scam was unearthed in the Salem region of the Highways department in purchase of various materials for the maintenance of National Highways 4 and 47. The scam, involving crores, was reportedly committed by creating an `out of letter credit' to purchase carts, bolts, nuts, tar tins, etc, thus causing a wrongful loss to the Government. The DVAC claimed that those who were involved in the scam knew that there was no provision for procurements. No material was used for the slated purpose. Above all, the price was 100 per cent more than the open market rates.

These illegal transactions, the agency said, took place through five bogus and letter-head cooperative societies registered under the Khadi and Village Board. In the total purchase value of Rs.6.28 crores, the Government incurred a loss of Rs. 3. 85 crores.

The DVAC filed a preliminary charge sheet in 2001. Later it filed an amended and final charge sheet under Section 173 (viii) Cr.P.C in which the former AIADMK minister was named the first accused.

A retired official, who figured in the charge sheet, approached the Madras High Court to expedite the hearing of the case registered way back in 1994. Cases under Sections 120 B, 167, 477 (A), 420 and 409 of IPC and 13(2) read with 13 (1) c and d of the Prevention of Corruption Act 1988 were registered against the accused.