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Jayalalithaa acquitted in SPIC case

By K.T.Sangameswaran

CHENNAI, JAN. 23. A special court here today acquitted the Chief Minister, Jayalalithaa, in the `Southern Petrochemical Industries Corporation (SPIC) disinvestment' case.

Two other accused, the former Industries Secretary, C. Ramachandran, and the industrialist, A.C. Muthiah, were also acquitted of all charges.

Delivering the 93-page judgment, R. Rajamanickam, special judge-I, said the prosecution had not proved the charges beyond reasonable doubt. The three were not found guilty.

The judge said witness evidence clearly established that the transaction was considered in depth at various levels, discussions were transparent and that the management of the Tamil Nadu Industrial Development Corporation (TIDCO), the departments of Industries and Finance and the Chief Secretary had made a collective decision.

The case, investigated by the Central Bureau of Investigation (CBI), was that during the previous AIADMK rule, there was a conspiracy between Ms. Jayalalithaa and Mr. Ramachandran, who abused their position to bring back M.A.Chidambaram (since deceased) as SPIC Chairman and renounce TIDCO's rights in the ``zero conversion bond'' of the joint sector company. Because of the transaction, the Government suffered a loss.

All chargesheeted cases disposed of

With today's judgment, all chargesheeted cases against Ms. Jayalalithaa, which were pending before the special court set up during the previous DMK rule, have been disposed of.

When the case came up at 10.30 a.m., the judge said the verdict was not ready and it would be completed only by 12 noon. Following this, Ms. Jayalalithaa left the court and returned in the afternoon, when the judgment was pronounced.

Citing evidence, the judge held that it was evident that the decision to renounce its rights was taken by TIDCO at its meeting duly held, the valuation of premium was worked out by adopting the formula recommended by the State government undertaking and that after a proper analysis and due consideration, the Government approved the TIDCO's resolution to renounce its rights at Rs.12.37 crores keeping the number of directors on the SPIC board intact.

`No conspiracy or misconduct'

The judge said that from the evidence of prosecution witnesses it was clear that there was no conspiracy or misconduct in the appointment of the Chairman of the joint sector company. There was no question of pecuniary advantage. Witnesses testified to Mr. Ramachandran applying his mind properly to the subject matter; to the general policy of disinvestment adopted by the Government; that the TIDCO decision to renounce was correct; valuation was suggested by TIDCO, the procedure was properly followed in the decision to renounce TIDCO's rights and that because of renunciation there was no loss to the Government or the government undertaking.

The judge said the Janata Party president, Subramanian Swamy, waited for three years to file a writ petition before the Madras High Court (on which a CBI enquiry was ordered into the transaction) after he came to know of the subject matter from a magazine. The magazine was not before the trial court. He testified he had no personal knowledge of the disinvestment transaction.

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