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Charges framed against Jaya in SPIC case: PTI

A special judge trying corruption cases on Tuesday framed charges of criminal conspiracy and corruption against former Tamil Nadu chief minister Jayalalitha, industrialist A C Muthiah and a former IAS officer in the Rs 282.9 million 'SPIC disinvestment case'.

Jayalalitha, Muthiah and C Ramachandran, former state industries secretary, appeared before Judge A C Arumugaperumal Adithan and pleaded 'not guilty' when the charges against them were read out.

Thereafter, the judge proceeded to frame charges against them and posted the case for further hearing on January 31, 2001.

The CBI has charged the three with conspiring to get the state-owned Tamil Nadu Industrial Development Corporation to renounce its rights in the joint sector Southern Petrochemical Industries Corporation in March 1992 when SPIC came out with a 'zero conversion' bond issue.

As a result of the then AIADMK government's decision not to subscribe to the rights issue, but instead accept a 'renunciation price' of Rs 123.7 million, the exchequer suffered a loss of Rs 282.9 million, according to the CBI chargesheet.

However, the trial cannot begin immediately, as a bench of the Madras high court has allowed the CBI to proceed only up to the stage of framing of charges, and not to go ahead with the trial without further orders.

The CBI had taken up the investigation based on a Madras high court direction by a single judge who also directed Jayalalitha and Muthiah, who was SPIC vice-chairman and president at the time of the transaction, to make good the loss to the state by paying Rs 282.9 million.

However, they had gone on appeal and a division bench stayed the direction regarding payment, but allowed the CBI investigation to go on. The appeals are still pending.

The CBI, in its chargesheet filed recently before the special judge, alleged that Jayalalitha and Ramachandran 'abused their position as public servants' to favour then SPIC chairman, the late M A Chidambaram and Muthiah by first letting Chidambaram become the company's chairman and then by deciding to renounce TIDCO's rights when the issue was announced.

One of the illegal acts alleged against them is that they reversed the previous government's decision to have its own nominee as chairman (as TIDCO's holding then stood at 26 per cent) and letting Chidambaram 'gain control of the company'.

In March 1992, Ramachandran, as industries secretary, asked the TIDCO Board to renounce its entitlement in the rights issue, and this was approved by Jayalalitha for a 'nominal price' of Rs 123.7 million, much lower than the market price of the day of Rs 406.6 million, thereby resulting in a loss of Rs 282.9 million, the CBI has alleged.

EARLIER REPORTS:

CBI gets nod to prosecute Jaya: PTI
CBI chargesheets Jaya in SPIC case: PTI

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