Chennai, Dec 26: A special judge, today framed charges of criminal conspiracy and misconduct against former Tamil Nadu Chief Minister and AIADMK General Secretary J Jayalalitha in the Rs 28.29 crore SPIC disinvestment case.Special judge-1, A C Arumughaperumal Adityan also framed charges against leading industrialist A C Muthiah and former industries secretary C Ramachandran in the case and posted it to January 31 for trial.
However, the trial in the case would not commence early inview of the directive by a division bench of Madras High Court, allowing the special judge to go ahead with the case upto the stage of framing of charges till the disposal of appeals filed by Jayalalitha and Muthiah against a single judge order, directing them to make good the loss and ordering a CBI probe into matter.
Jayalalitha, Muthiah and Ramachandran who were present in the court pleaded that they were not guilty of any of the offences.
The judge framed charges against the accused for offences under section 120-B (criminal conspiracy) and 109 (abetment) of IPC and section 13 (2) read with section 13 (1) (D) (criminal misconduct) of Prevention of Corruption Act.
The judge framed three charges against the accused in the case. Originally, Janata Party president Subramanian Swamy had filed a public interest litigation in the Madras High Court, seeking to quash a government letter, relinquishing its interest in SPIC shares and a direction to recover the value thereof from the company.
In 1997, a single judge allowed the PIL and directed Chidambaram, Muthiah and Jayalalitha to compensate the loss of Rs 28.29 crore to the government. The judge had also ordered a CBI probe into the matter.
Against this, the three filed appeals, and a division bench of the Madras High Court had stayed a portion of the single judge order in respect of payment of compensation and directed the CBI to go ahead with the probe.
On another petition, the bench directed the special judge to go ahead with the case up to the stage of framing of charges till the disposal of the appeal filed by them.
Accordingly, the CBI took up the investigation and filed the chargesheet on August 18 before the special judge.
According to the prosecution, Ramachandran, who became industries department secretary, after serving as chairman and managing director of TIDCO, had entered into a criminal conspiracy with the then SPIC chairman Chidambaram and its president and vice-chairman Muthiah, during 1991-92 in the matter of appointment of the SPIC chairman and renunciation of rights of TIDCO to zero conversion bond in favour of Chidambaram for a nominal price.
Pursuant to this, Jayalalitha and Ramachandran abused their position facilitating Chidambaram to become SPIC chairman and exercised full control over it. They also reversed the previous government's decision to appoint its own nominee as chairman in view of the 26 per cent shareholding of TIDCO held with SPIC.
The judge said Ramachandran, who was a party to the decision taken on June 21, 1991 to invest in zero conversion bond in SPIC to maintain 26 per cent equity in the company, did a volte face after becoming industries secretary by suggesting that TIDCO might be allowed to renounce its right to zero conversion bond knowing full well that it would result in monetary loss to the government and that the total share holding of TIDCO would be reduced to less than 26 per cent.
Jayalalitha approved the suggestion and permitted TIDCO to renounce its right in zero conversion bond in SPIC in favour of Chidambaran and Muthiah, without any negotiations for a low price of Rs 12.37 crore as against Rs 40.66 crore, the prevailing market price in March 1992, thereby causing a wrongful loss of Rs 28.29 crore to the government.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
