This Matter Is Being Adjourned Today? Supreme Court Expresses Surprise At CBI's Request To Adjourn Lavalin Corruption Case Involving Kerala CM

The Supreme Court has adjourned a batch of Special Leave Petitions challenging the Kerala High Court's order which discharged the key accused in the infamous Lavalin corruption case, including Kerala's Chief Minister Pinarayi Vijayan and K.A. Francis, the then Energy Department Secretary. In this case, the Vigilance and Anti-Corruption Bureau had found that excess payments were made to the Lavalin Company without proper authorization in a contract with the Kerala State Electricity Board during the period when Pinarayi Vijayan served as the power minister in the State. The matter has been adjourned on numerous occasions in past and the Chief Minister and the Centre have been facing political criticism for the same.

At the request of the Central Bureau of Investigation (CBI), the Bench of Justice Surya Kant and Justice Dipankar Datta adjourned the matter. The Bench expressed surprise on hearing the CBI's request for an adjournment. "This matter is being adjourned today?", asked Justice Surya Kant upon hearing the request for adjournment.

The adjournment request was allowed after the Bench was informed that the Additional Solicitor General SV Raju, who was representing the CBI, was unavailable. Justice Surya Kant asked, "Is he not available or is he.." The lawyer replied that the ASG was held up in another Court. The Court also asked if the ASG is appearing for the CBI in all the matters of just one case. The Court was told that since all the matters arise out of the same order, the ASG is appearing for the CBI in all the matters.

"Any objection?" asked Justice Kant and, accordingly, in its order noted, "Request of Adjournment is made of learned ASG representing the CBI as he is held up in some other matter." The Bench, upon further being informed that the Retired Chairman of the K.S.E.B stands unserved, directed the lawyers to take appropriate steps. Senior Advocate R. Basant appeared for a Respondent.

The Supreme Court had on January 11, 2018, issued notice in all the SLPs and had stayed the trial until further orders. The matter, since then, has been adjourned on multiple occasions on the request of either of the parties.

As per a media report, a voluntary organization working in tribal areas in Kerala and other states had written a letter to Prime Minister Narendra Modi and Supreme Court Chief Justice DY Chandrachud against Kerala Chief Minister Pinarayi Vijayan requesting not to adjourn Lavlin case further.

In the impugned order, the High Court had noted that Pinarayi Vijayan was nowhere in the picture, when the consultancy contracts were signed. He assumed office as the Electricity Minister in the Kerala Cabinet only in June, 1996.

"I do not find any material to substantiate such an allegation that anything concerning the supply contracts between the SNC Lavalin and the KSEB was suppressed by the 7th accused from the Cabinet. The documents produced by the prosecution include a Cabinet Note also, signed by the then Chief Minister. On consideration of the various aspects reported by the KSEB through the Principal Secretary, the proposal was approved by the Cabinet. Thus, it was a Cabinet decision. If so, there is no explanation why the CBI picked and chose the Electricity Minister for prosecution. The CBI does not have any satisfactory explanation as to what vicious role or dishonest role, the Electricity Minister had in the deal, when he got the things approved by the Cabinet, or when the Cabinet as a whole approved the proposal of the KSEB", read the High Court order.

The Judge also stated that it was s pertinent to note that what the Cabinet approved was not the proposal of the Electricity Minister, but the proposal of the Cabinet happened to give approval on the basis of the materials furnished and reported by the KSEB and if so, it would be unjust and illegal to pick and choose the Electricity Minister and prosecute him, for the wrong or illegality committed by the KSEB.

The High Court also remarked on the CBI that there is no explanation as to why the CBI did not probe into the failure on the part of the other Ministers, who succeeded Pinarayi Vijayan.

The case pertained to the awarding of a contract to the Canadian company SNC-Lavalin for the renovation of three hydel projects - Chengulam, Pallivasal, and Panniyar. This occurred during the tenure of Pinarayi Vijayan as the power minister in the E K Nayanar cabinet from 1996 to 1998.

Cause Title: Kasthuri Ranga Iyer v. State Rep. By Addl. Superintendent of Police CBI & other connected matters [SLP(Crl) No. 007801 - / 2017]