The contract was signed by Lavalin and KSEB on February 10, 1997, even without government approval and ignoring the E Balanandan Committee report received a week ago, which had recommended only replacement of essential parts at a cost of Rs 100.5 crore.

Vijayan and his men, CBI says, with the intention of giving undue favours on SNC Lavalin, entered into a non-binding MoU on April 25, 1998, which kept SNC’s escape route open, thereby causing a huge loss to the exchequer. No government order had been issued authorising Mohanachandran, the first accused, to sign the MoU. But with the concurrence of the minister and A Francis, former joint secretary in the power department and now the tenth accused, the steps taken by a section officer to get a government order issued was reversed, saying that the minister’s approval was sufficient.

Contrary to the MoU, SNC Lavalin unauthorisedly and illegally appointed their own consultant, Technicalia Consultants Pvt Ltd., Chennai, with the active collusion of Mohanchandran and in full knowledge of Pinarayi Vijayan, who never objected to the appointment. Taking advantage of the non-binding MoU, after spending Rs 12 crore, SNC Lavalin backed out of its commitment on MCC.

The CBI has also alleged that Pinarayi, Mohanachandran and Francis fraudulently suppressed certain relevant facts such as signing of supply contract on February 10, 1997, recommendation of KSEB secretary Viswamony for pari passu grant to MCC, with the implementation of the renovation project, report of NHPC and E. Balanandan Committee recommendation. Pinarayi had taken “extra undue interest” in the deal and even met and prevailed upon State Bank of India General Manager regarding a deferred payment guarantee (DPG). He had also insisted that MCC be under his department, and thereby under his control. Pinarayi had contact with SNC Lavalin officials and “misused his official position” to exert pressure on KSEB staff and thereby favoured SNC Lavalin’s representative in their official dealing with the KSEB.....Continue