[LIFE Mission case] Much ado about nothing, says petitioner challenging CBI probe; "Fraud", says CBI as Kerala HC reserves orders

The Kerala High Court today reserved orders in the challenge to the investigations instituted against the Chief Executive Officer of Kerala LIFE Mission and others for alleged Foreign Currency Regulation Act (FCRA) violations (The Chief Executive Officer v. Union of India; Santhosh Eappen v. Union of India)..Hearings in the matter concluded today before the Bench of Justice VG Arun..Kerala HC hears plea against CBI inquiry into Kerala Government's LIFE Mission; No stay on investigation against Mission's CEO .In the previous hearing Senior Advocate KV Vishwanathan had averred that the investigation was founded in political considerations, while CBI Standing Counsel Sasthamangalam Ajithkumar asserted that it had enough material to proceed with an investigation..At that stage, the Court refrained from admitting the matter, but posted it for further hearings..Today, Senior Advocate Vishwanathan elaborated upon the theme of the investigations being unfounded, politically-motivated, and damaging to the morale of public servants. His submissions were peppered with Supreme Court pronouncements..Continuing the investigation would therefore be a gross abuse of process, Vishwanathan reiterated..He argued that the State had the locus standi to file a petition before the High Court to quash investigation against it and referred to Supreme Court judgments in this respect..The Counsel for the CBI Sasthamangalam Ajithkumar maintained that his case was sound on facts and on law..In respect of charges against the Unitac MD Santhosh Eappen, the Standing Counsel argued that Eappen had handed over crores of rupees to several persons on the instruction of the accused in the gold smuggling case Swapna Suresh. .[Kerala gold smuggling case] Swapna Suresh moves Kerala HC for anticipatory bail, registers protest over "numerous false stories” by media .The money received was given to various others after which the project was approved. It was pursuant to this that Unitac was granted the LIFE Mission project. Unitac did not become a part of the LIFE Mission project by way of a tender process, he underscored.."This is a fraud; under the guise of the Foreign Contribution Act, the MoU (between the Kerala Government and the Dubai-based Red Crescent) was hijacked by the Principal Secretary with the aid of not only the smugglers but with the aid and assistance of Mr Santhosh Eappen .. this amounts to a clear conspiracy", he argued.."…there is a conspiracy to draw the money that is intended for poor persons … allow us to investigate, we will unearth this fraud completely!"CBI Standing Counsel.He also stated that the CBI was empowered by two notifications, one by a Central Notification and a State Notification to investigate offences under the FCRA. The CBI could proceed with the investigation without obtaining the assent of the State Police, he submitted..Justice VG Arun then asked the CBI Counsel on how LIFE Mission was connected to the investigation launched..Responding that the question was germane, the Counsel stated that LIFE Mission had not been mentioned by name as accused in the FIR, nor were executives of the body implicated. All that was initiated was an investigation, he said. Thus, the State did not have the locus to state that it was being targeted by the CBI. Only the accused will be arrested, he stated emphatically..Refuting the CBI’s submissions as fiction being spun, Senior Advocate KV Vishwanathan declared that he had to pinch himself to believe what was going on. He proceeded to argue that any investigation launched against the State or public servants could weaken morale, even if the allegations were later found wanting..Without taking the case by name, the Senior Advocate referred to the NCB investigation in the Rhea Chakraborty case and the impact on her reputation..[Breaking] Bombay HC grants Bail to Rhea Chakraborty, two others in NDPS case; Bail pleas by Abdul Parihar, Showik Chakraborty rejected.Eappen’s Counsel Advocate Abhilash KN emphasized that Unitac’s contract with the Red Crescent - an independent contract unconnected with the Government - could not come under the purview of the FCRA in view of business transactions being exempted from within its ambit..Reserving the matter for orders, Justice Arun appreciated the Counsel for their arguments and directed the CBI to deposit the investigation's case diary at his Chambers.