CBI probe into Kerala housing project to continue

In a setback to Kerala government in its tussle with CBI, Kerala High Court on Thursday did not issue any stay on the CBI probe into the alleged irregularities and kickbacks in a UAE agency funded housing project of Kerala government.

The court even orally mentioned that the probe may continue.

Kerala government on Wednesday filed a petition seeking quashing of the FIR filed by the CBI alleging that there were political and extraneous considerations behind the CBI decision to file the FIR on the basis of a petition given by Congress MLA Anil Akkara.

A single bench of the high court that considered the petition on Thursday maintained that it could not interfere with the investigation at this stage and also orally remarked that the CBI investigation shall go on.

The court will consider the case again next Thursday. The court also pointed out that CBI did not arraign anyone as accused so far, but only summoned officials to produce documents pertaining to the matter.

The case pertained to alleged commissions and irregularities involved in a Rs 20 crore housing scheme for 140 families funded by the UAE-based Red Crescent initiated under the state government's flagship LIFE Mission scheme.

Kerala gold smuggling case accused Swapna Suresh, who was a former employee of the UAE consulate in Kerala, was among those suspected to have received a commission in the deal.

Opposition parties alleged that the Rs 20 crore project involved Rs nine crore commission and many in the government received it.

The state government's major contention against CBI probe was that it did not involve FCRA violation. The foreign fund was received by the private agencies carrying out the construction. The state also alleged that registration of a case by CBI just on the basis of a complaint was certainly on political considerations.

Meanwhile, Kerala Vigilance and Anti-Corruption Bureau also registered a case on Wednesday in the matter. No one was arraigned in the case. The probe was initiated as per Kerala government's order and the opposition alleged that he Vigilance probe was an attempt to scuttle CBI probe.