SPIC case — Jaya to be charged on Dec 26

Chennai, Dec 22: A Special Judge today directed former Tamil Nadu Chief Minister Jayalalitha, industrialist A C Muthiah and a former IAS o...

Chennai, Dec 22: A Special Judge today directed former Tamil Nadu Chief Minister Jayalalitha, industrialist A C Muthiah and a former IAS officer to appear before him on December 26 for framing of charges against them in the Rs 28.29 crore `SPIC disinvestment case’.

Special Judge A C Arumugaperumal Adityan, who refused to discharge Muthiah and former Director of Tamil Nadu Industrial Development Corporation (TIDCO) C Ramachandran from the case on Thursday, fixed December 26 for framing of charges.

While their discharge petitions had been dismissed, Jayalalitha has not filed one seeking discharge from the case, as her petition challenging the Special Court’s jurisdiction to try the SPIC case is pending in the Madras High Court.

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According to the chargesheet filed by the CBI in August last, Jayalalitha, Ramachandran, industrialist M A Chidambaram (since deceased) and Muthiah, then vice-president and president of Southern Petro-Chemical Industries Corporation (SPIC) allegedly entered into a criminal conspiracy in the appointment of SPIC chairman and renunciation of rights of TIDCO to zero conversion bonds in SPIC in favour of late Chidambaram for a nominal price.

The CBI had charged Jayalalitha and Ramachandran with using their position as public servants in 1992 to help the late Chidambaram become SPIC chairman by reversing an earlier Tamil Nadu Government decision to appoint its own nominee as SPIC chairman in view of TIDCO’s 26 per cent stake in SPIC.

TIDCO’s renouncement of its right to invest in the zero conversion bond issue reduced its share in SPIC to less than 26 per cent. The renouncement at a very low price of Rs 12.37 crore, against the advantageous price of Rs 40.66 crore, had resulted in a loss of about Rs 28.29 crore to the state exchequer, the agency contended.

The CBI has charged them under Sec. 120-B IPC (Criminal Conspiracy) read with Sec.13(2) read with 13(1)(D) Of Prevention of Corruption Act (PCA) and specific offences under sec 13(2) read with sec 13(1)(D) Of PCA and sec.109 IPC (abetment) read with sec. 13(2) read with sec.13(1)(D) Of PCA.

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In December 1997, a single judge of the Madras High Court, acting on a writ petition filed by Janata Party president Dr Subramanian Swamy, challenging the decision of the Jayalalitha government to renounce its stake in SPIC, had ordered a CBI probe and directed Jayalalitha, Ramachandran and Muthiah to pay the state Rs 28.29 crore representing the loss suffered by Tamil Nadu due to the renunciation.

He had also directed the CBI to file its chargesheet with the special court, set up by the state government to try cases of corruption by publicmen during the AIADMK supremo’s tenure as Chief Minister between 1991 and 1996.

Jayalalitha has, however, challenged the jurisdiction of the special court to try the case, contending that it was not in the original list of cases to be tried by the three courts set up by the Tamil Nadu government.