ASSEMBLY POLL '98
COMMENTARY
SPECIALS
INTERVIEWS
CAPITAL BUZZ
REDIFF POLL
DEAR REDIFF
THE STATES
YEH HAI INDIA!
ELECTIONS '98
ARCHIVES

TN govt hauled up in sandalwood scam

A division bench of the Madras high court has ordered the issue of notices to the Tamil Nadu government and the Karnataka Soaps and Detergent Limited on a petition alleging the state exchequer lost Rs 14.7 million because sandalwood was sold to KSDL at a cheaper rate.

The bench, comprising Acting Chief Justice Shivraj V Patil and Justice K P Sivasubramaniam ordered issuance of notices returnable in three weeks, on a public interest litigation filed by advocate A Chandrasekar, who also sought that the government order of December 28 last be quashed. The order stated that 55 tonnes of the first class variety of Jaipokal sandalwood was sold for just Rs 18.9 million rate of Rs 344,000 per tonne to earn goodwill following a request from the Karnataka government.

The bench recorded the petitioner's counsel's statement that this variety of sandalwood could not be used for extracting oil to make soaps. Unless the respondent was able to demonstrate the existence of public interest, it would mean the order had been passed with ulterior motive, the petitioner submitted.

The petitioner sought an interim injunction restraining KSDL from lifting sandalwood from the Salem and Thirupattur depots pending disposal of the petition. The petitioner also submitted that the KSDL's bids had been rejected as the lowest at the forest department auctions on September 10 last at Salem, and at Thirpattur the next day.

The petitioner submitted that had the sandalwood been sold in public auction at the rate of Rs 611,000 per tonne -- the price paid by the Karnataka State Forest Industries Corporation Limited in June 1996 -- the state government would have earned Rs 33.6 million.

Tell us what you think of this report