Vigilance rules out further probe into MCL scam

Wednesday, September 28, 2011: The Vigilance and Anti-Corruption Bureau (VACB) has on Wednesday ruled out that need for further probe into the transport of fly ash to the public-sector Malabar Cements Ltd. (MCL) at Walayar, causing a loss of Rs.16.17 crore.
A letter regarding this has been forwarded to the Chief Minister Oommen Chandy by the vigilance deprtament. The Vigialnce had earlier filed a charge sheet at a Vigilance court in Thrissur, naming the former Chief Secretary John Mathai as an accused in the case.

The case is that the company had given a contract to S.R.V. Transport, merely a letterhead company with no fleet of its own, for transport of fly ash from the thermal power projects of the Tamil Nadu Electricity Board Ltd. at a very high rate without inviting tenders.
Mathai’s name has been included as he was the Chairman of the company when the contract was given. Krishnakumar was a director.
The accused have been charged under sections 13(2) read with 13 (1-D) of the Prevention of Corruption Act and sections 409, 420, 468, 471 and 120B of the Indian Penal Code.
The charge sheet said the contract was given without the prior approval of the board of directors of the company. The officials accepted the offer made by V.M. Radhakrishnan, contractor named in the charge sheet, to supply fly ash.

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