CBI to probe SNC Lavalin case

Kochi, Jan 16 (UNI) The Kerala High Court today directed the CBI to investigate into the alleged irregularities in the award of contract to the Canadian firm SNC Lavalin, for modernisation of three hydel projects in the state.

A division bench comprising Chief Justice V K Bali and Justice J B Koshy observed that the deal of contract with SNC Lavalin had been found to be shady and a huge loss was incurred by the Kerala State Electricity Board through the deal.

The Bench gave the direction after allowing three writ petitions and one review petition filed by the CBI and dismissed the review petition filed by the state government against the CBI probe.

The contract was awarded to SNC Lavalin for the renovation and modernisation of Pallivasal, Sengulam and Panniar hydro electric projects during the Nayanar Government.

The court also observed that the controversy surrounding the award of contract to the Canadian firm and the loss suffered thereby was a burning issue in the state. It said the state exchequer had incurred a staggering loss of Rs 374.5 crore.

The court further added that there was no justification for the CBI to take the decision that the investigating agency need not take up the case.

''We are of the firm view that incorrect or non-existent materials were taken into consideration by the government in reversing the decision of the Cabinet to order a CBI probe,'' the court noted.

The court also said, ''in a mammoth project of the nature under consideration the contract could not be arrived at without the approval of the higher-ups. Who-so-ever they may be, it will be the travesty of justice, if in a scandal of this massive nature only small fishes are tried as accused that would simply be an eye wash.'' The court further said there was enough material on record which justified an inquiry by an independent agency like CBI which may not be under the control of higher functionary of the state.

UNI