Public Works Contracts Scam: Madras High Court Directs DVAC To Complete Probe Against Former AIADMK Minister SP Velumani In 10 Weeks

It was alleged that the former Minister deliberately reduced the number of tenderers for public works and awarded contracts to his close aids, in violation of the Tamil Nadu Transparency in Tenders Act, 1998 and the Rules, as well as the Competition Act.

Elaborate orders were earlier passed at the initial stage, appreciating the need for an investigation.

Accordingly, a preliminary report was submitted by the investigating agency in December 2019. However, not much progress was made after the pandemic struck.

Thus, the Court has ordered,

"A report will no doubt be filed and such report should be filed within the next ten weeks, be it in the form of a chargesheet or as a final report."

Significantly, the former Minister had sought a copy of the preliminary inquiry report submitted by DVAC, saying that making the report available to him was important to protect his own interests.

Declining this request, the Court said that the law must be allowed to take its own course and that in any case, the investigation has almost come to an end and the charge-sheet or final report, if any, will be filed within next ten weeks. It added,

"In course of the material being made over to the fourth respondent (Velumani) under Section 207 of the Code of Criminal Procedure, 1973, if the preliminary report forms the basis for any of the charges sought to be framed, a copy of such preliminary report may be made over to the fourth respondent and it will also be open to the relevant criminal court to consider whether the petitioner may also obtain a copy thereof", the court noted.

The court further recorded that:

"Since the pandemic struck thereafter, not much progress was made but the State now says that the investigation has been taken up in right earnest and an appropriate report will be filed in accordance with the law. The State points out that the investigation in the present case has been conducted by one Ms.Ponni, IPS, who was the Superintendent of Police and Directorate of Vigilance and Anti-Corruption, and it is such official who had filed the preliminary report on December 18, 2019."

"In view of the fact that the investigation has almost come to an end and since the charge-sheet or final report is to be filed within the next ten weeks, no useful purpose would be served in keeping these petitions alive."

Accordingly, both writ petitions were disposed off.

Background

The development comes in the plea filed by 'Arappor Iyakkam', an NGO and MP R.S. Bharathi.

Back in January 2019, the former had approached the court to issue a Writ of Mandamus directing DVAC to register an FIR on the basis of its complaint dated 12.09.2018.

As per the amended provisions of the Prevention of Corruption Act, 1988, it was prerequisite u/s 17A(1)(b) of the PCA to obtain previous permission from the Government for an investigation into offences committed by public servants.

The petitioner contended that neither the Chief Secretary nor the government was an appropriate authority to grant permission in terms of serious allegations against a senior cabinet minister and only the Governor could grant the same.

The petitioners also wanted to constitute a Special Investigation Team to conduct a time-bound and high court-monitored, impartial investigation into the manner in which tenders have been allotted and whether there has been collusion with private firms.

Later, the government accorded permission to conduct a preliminary inquiry.

In December 2019, a preliminary inquiry report was submitted to DVAC by the investigation officer that gave a clean chit to the respondent, subsequent to which the government decided not to press charges against SP Velumani. The court had however declined to close the pleas.

In 2021, a fresh report was filed by DVAC by citing the 2016 and 2020 Comptroller and Auditor General of India (CAG) reports and FIR was registered against the former Minister after raids were conducted at his residence.