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DVAC slaps corruption cases against Kalimuthu

Written by: Staff
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Chennai, Sep 14 (UNI) Two corruption cases have been registered against former Assembly Speaker and AIADMK leader K Kalimuthu by the Directorate of Vigilance and Anti-Corruption today.

DVAC sources said the cases pertained to alleged irregularities in granting leases to two hotels situated at the Government Estate here at low rents, causing financial loss to the State exchequer.

Cases were filed against him under the Prevention of Corruption Act and under 120-B (criminal conspiracy) of the IPC.

While one case was filed against Mr Kalimuthu and K V R Mani in respect of the Anna canteen, the other was filed against Mr Kalimuthu and Haneefa for extending lease at low rent to Anbagam restaurant, without following the tender process.

The issue was raised in the State Assembly, following which Chief Minister M karunanidhi assured the House that action would be taken if any irregularity had taken place.

The allegation against Mr Kalimuthu was that he had reduced the rent to Rs 2750 for Anna Canteen, much lower than the rent collected earlier, and extended the lease to a further period of three years from March 27, 2005, causing a loss of Rs ten lakh to the government.

The other allegation was that he had granted a similar contract to Anbagam at a rent of Rs 5,000 per month from August five, 2002, and extended the lease for four years.

The government had received an annual rent of only Rs 60,000 as against Rs 11.50 lakh earlier, leading to a loss of Rs 43 lakh.

UNI GV AA VA BD1949

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