In a relief to the LDF Govt, the High Court of Kerala on Tuesday stayed for 2 months the CBI probe against the CEO of LIFE Mission, a state housing project, over alleged FCRA violations in respect of funds received from a foreign sponsor for construction of dwelling units in Thrissur district. Justice V G Arun granted the interim stay on a plea by Life Mission CEO U V Jose challenging the registration of the FIR by the central agency against unknown officials of Life Mission.
However, the Judge allowed the CBI to continue its inquiry initiated against the Managing Director of Unitac, a private firm which has been awarded the contract for construction of the houses in Wadakkanchery Municipality. The case against the firm & others was registered on the basis of a complaint by Congress MLA Anil Akkara alleging violation of the provisions of the Foreign Contribution (Regulation) Act in acceptance of funds from a UAE aid agency for executing the housing project for the poor.
Akkara, representing Wadakkancherry constituency, in his complaint with the CBI's unit here contended that acceptance of funds by Unitac Builders & Developers & Sane Ventures LLP from Red Crescent, the UAE-based aid agency, with the 'concurrence' of the LIFE Mission, a Kerala Govt agency, was illegal & in violation of the provisions of the FCRA. Based on the complaint, an FIR was registered by the CBI, for offences under Indian Penal Code Section 120B (punishment of criminal conspiracy) read with Section 3 of the FCRA against Unitac Builders & Developers Managing Director Santosh Eappen, Sane Ventures LLP & unknown officials of the LIFE Mission Kerala & others.
Jose & Eappen filed separate pleas for quashing the CBI case alleging that it was registered in a hasty manner. During the hearings, senior lawyer for the LIFE Mission had submitted the complaint doesn't even make out a case prima facie the registration of the case "in hasty manner" indicated a deliberate attempt to malign the State Govt.
He also referred 2 Central Govt notifications issued in 2011 & 2020 to drive the point that the project has received exemption from the operation of all provisions of the FCRA. The standing counsel for CBI had claimed a conspiracy was hatched much before the MoU between Red Crescent & the Life Mission, to award the work to Unitac & Sane Ventures, which are only name lenders, & to siphon off the foreign contribution in the guise of kickbacks to the officials at the UAE consulate.
The Central Bureau of Investigation also contended that senior officials in the State Govt, including the then principal secretary to the CM, were parties to the conspiracy & further investigation was required to unravel the truth. In the interim order, the Judge said the provisions of the FCRA & materials on record do not justify arraying of the LIFE Mission CEO as an accused in the case & granted interim stay of all further proceedings in the CBI case against him for 2 months.
However, he rejected the petition for interim stay in the plea filed by Unitac Managing director, saying registration of case against him warranted no interference at this stage. The alleged FCRA violation had snowballed into a major political issue with opposition parties alleging that Swapna Suresh, a key accused in the gold smuggling case, had admitted before an NIA Court that she had received Rs 1 crore as commission from the project.
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