NEW DELHI: The Central Bureau of Investigation (CBI) has sought sanction for launching prosecution against the former Tamil Nadu Chief Minister, Jayalalithaa, in a decade-old corruption case.

Privileged sources told The Hindu on Friday that the agency had sought permission from the Tamil Nadu Legislative Assembly Speaker for prosecuting Ms. Jayalalithaa as she is a member of the Assembly. It is learnt that the report of the Superintendent of Police, CBI, has been sent to the Speaker.

The CBI headquarters here also received legal opinion in the matter from the Attorney General and the Law Ministry.

The delay in seeking sanction for her prosecution was attributed to the "complex nature" of the case and to certain legal issues involved in it. Informed sources said that delay was also caused in getting replies to the Letters Rogatory sent to the U.S., the Channel Islands and Dubai and in conducting investigations abroad. The probe involved various departments of the Tamil Nadu Government and an examination of relevant witnesses, most of them being political party leaders. Investigations involved the collection of documents and material from various agencies.

The case, under the provisions of the Prevention of Corruption Act, 1988, was initially registered in 1996 on the complaint of the Director-General (Investigations), Income Tax. It related to alleged gifts received by Ms. Jayalalithaa which she had disclosed in her income tax returns. However, at the request of the State Government, the case was transferred to the CBI and re-registered by the agency's Anti-Corruption Branch in Chennai as R.C. 50 (A)/96. A memo was added to the First Information Report (FIR) in October 1996 in the light of the materials collected during investigations.

The alleged offence under Section 13(1)(e) of the Prevention of Corruption Act was investigated by the CBI.

Investigations primarily focussed on receipt of gifts by her during 1992 in the form of demand drafts, including drafts worth $300,000 issued by ANZ Grindlays Bank, Jersey, Channel Islands, drawn on Bankers Trust Company, New York.

According to informed sources, investigations revealed that no material was available to establish that Ms. Jayalalithaa had abused her official position as Chief Minister in the matter of appointments given to donors of the drafts in the government or public sector undertakings and that there was no evidence to establish that drafts were received by her as a quid pro quo for the appointments given by her. It was, therefore, concluded that no offence under Section 13 (1) (d) of PC Act was made out against her but an offence was made out under Section 11 of PC Act.

According to these sources, on her birthday in 1992, Ms. Jayalalithaa received 89 demand drafts worth Rs. 2 crore drawn on various banks in Tamil Nadu, which were purchased in the names of 57 persons and cash of Rs. 15 lakh. The cash and drafts were credited to her savings bank account in Canara Bank, Chennai and these disclosed by her in income tax returns as gifts received.

It was concluded that Ms. Jayalalithaa had committed offence under Section 11 of the PC Act for acceptance of cash and drafts worth about Rs. 2 crore under consideration from persons with whom she had official transactions or had transacted or would have transacted.

Investigations revealed that Sengottiyan and Alagu Thirunavukkarasu, her Cabinet members, were instrumental in purchasing and providing money for purchasing drafts to the tune of Rs. 22,53,700 and Rs. 22,50,000 in her name and thereby abetted her to accept the gifts in the form of drafts worth Rs. 45,03,700 without consideration. They also committed offence under Section 12 of the PC Act, 1988.

So far as the allegation of receipt of $300,000 by her is concerned, the agency did not recommend any action.

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