Kochi: Kerala bureaucrat Sivasankar who is now in the custody of the Enforcement Directorate (ED) over alleged money laundering for the benefit of a gold smuggling racket could be picked up by three other central agencies over his suspected complicity over other related transgressions. The National Investigation Agency, the Central Bureau of Investigation (CBI), and the Customs, which had unearthed the smuggling carried out through the diplomatic channel, may soon interrogate him as the latest leads call for their involvement. A graft case over the Life Mission Project too is also likely to entrap the once-powerful IAS officer,
Sivasankar could be questioned by the NIA over the gold smuggling case after accused Swapna Suresh deposed to the ED that the black money found in her locker belonged to him and it was ill-gotten wealth. The NIA has booked Swapna and a few others under the Unlawful Activities (Prevention) Act.
The ED had taken Sivasankar in after booking him for money laundering to aid Swapna. (This case is under the consideration of the Principal Sessions Court in Kochi. It also doubles up as the Special Court for trying offences under the Prevention of Money Laundering Act.)
The NIA, Customs and the ED are conducting separate investigations into the seizure of gold worth nearly Rs 15 crore from a diplomatic baggage of UAE Consulate at Thiruvananthapuram airport.
Why Customs
The former Principal Secretary to the Kerala Chief Minister might also be arraigned as an accused in a Customs case.
The ED has told the court that Sivasankar's intervention to get the diplomatic baggage containing hidden gold released without checking is a matter of serious nature. It was a grave mistake on his part to misuse the high post in the chief minister’s office for interfering with the functioning of another government office.
Sivasankar's intervention in such transactions also suggest that Swapna had a strong connection in the chief minister’s office.
Why CBI
The pace of investigations shift to a different gear with Swapna's admission that Sivasankar got Rs 1 crore commission. In the last round of interrogation by the ED, Swapna has claimed that Rs 1 crore found by the sleuths in her bank locker was indeed the commission paid to Sivasankar in return for awarding the building contract of the Kerala government's Life Mission Project to Kochi-based real estate developer Unitac.
The CBI is probing the corruption allegations that have clouded the Life Mission Project which aims to provide housing for the poor and the landless.
Meanwhile, ED's findings also point to the circumstances wherein Unitac MD Santosh Eapen and Sivasankar could be arraigned as accused in the case pertaining to the violation of Foreign Contribution Regulation Act (FCRA) in the Life Mission Project. This alleged transaction pertains to the payment made by the Red Crescent Authority of the UAE for Rs 20 crore assistance for a LIFE Mission project in Wadakkanchery. (As was reported earlier Red Crescent had signed an MoU with the Kerala government and subsequently a contract with Unitac for construction of the apartments. It is believed Swapna engaged the UAE agency by exercising her influence with its consulate.)
Swapna and K-FON project
Meanwhile, the ED has found the claim of Kerala State IT Infrastructure Limited (KSITL) that Swapna was not involved in any of the activities of the Kerala Fibre Optic Network Project (K-FON) project as hollow.
IT secretary Mohammad Safirullah, who had replaced Sivasankar recently in that coveted post, had written a letter on August 13 asking whether Swapna had intervened in the K-FON project. After four days, KSITL MD C Jayasankar Prasad replied that she had not intervened in the project in any manner.
(IT secretary has the charge of KSITL, Space Park and K-FON, all three now found associated with Swapna. It was revealed much earlier Sivasankar had intervened to get her a prime posting at the Space Park.)
The reply was also crucial in deciding whether PricewaterhouseCoopers (PwC) which had appointed Swapna at the Space Park, should be taken off the K-FON project. Subsequently, the government decided to allow PwC to continue till the expiry of its contract. However, in the light of fresh revelations the PwC contract may be re-examined.
Swapna had also intervened in the Kochi SmartCity project which was monitored by Sivasankar in his capacity as the IT secretary and chief minister’s principal secretary.
The ED was given one more day for questioning Sivasankar in custody as Swapna's grilling by the investigation agency continued in jail on Wednesday.