Kollam: Any likely Central Bureau of Investigation (CBI) action has become a red rag of sorts for those in the higher echelons of the Kerala government. Even as the state is mulling over denying consent to the central agency to take up probe without the government consent, a department secretary, who recommended nod for CBI prosecution of the accused in a graft case related to the Kerala State Cashew Development Corporation (KSCDC), has been shunted out.

After packing off the officer from the post, the government issued an order declining permission to prosecute the main accused who are all current or former honchos of the Corporation.

The case is over the import of raw cashew from 2006 to 2015. The KSCDC had incurred huge losses with the purchase. 

It was Cashew Department secretary K Gopalakrishnan Bhatt who first wrote that CBI could be given permission to prosecute K A Ratheesh, the first accused in the case and former Cashew Development Corporation MD, and R Chandrashekharan, the second accused and former KSCDC Chairman. However, the entire story changed after Minister J Mercykutty Amma, who oversees the department, also signed the file and forwarded it to the Chief Minister's Office.

Ratheesh was the KSCDC MD from 2005 to 2015, while Chandrashekhan held the post from 2012 to 2015.

Bhatt, who is also secretary of Administrative Reforms Commission, had noted on the file that CBI can be permitted to proceed with the prosecution of the accused. Soon he was shifted to a relatively low-profile post of Secretary at the Sainik Welfare Department. Rajesh Kumar Sinha who returned from central deputation was posted in Bhatt’s place.

The Chief Minister’s Office has reportedly sent the controversial file for a legal opinion.

According to reports, Bhatt was removed as the government could not have got an order denying permission for prosecution from an officer who had recommended it. Subsequently, he went to Bihar as an election observer.

The CBI had sought permission for prosecuting the accused after conducting a comprehensive probe for nearly 5 years. The case was registered in 2016 after the Kerala High Court ordered a detailed probe following a complaint alleging corruption to the tune of Rs 500 crore in the Corporation in connection with the import of raw cashew.

Abnormal salary hike

Meanwhile, a decision was taken to double the salary of K A Ratheesh who is currently Secretary of the Khadi Board. But a technical problem cropped up in the matter after Industries secretary Mohammad Hanish inquired about the salary given to the past secretary. As of now, the decision is to grant Ratheesh a salary on par with KINFRA MD which comes to Rs 1.75 lakh along with other allowances.

Industries Minister E P Jayarajan, who is also the Chairman of the Khadi Board, has signed the file. It may be noted that the previous secretary drew just Rs 80,000 as salary.