The Kerala high court on Thursday rejected the bail petition of former principal secretary to chief minister M Sivasankar in money-laundering case related to the alleged corruption in Life Mission project, a housing scheme for the homeless.
He has been in judicial custody since his arrest on Feb 14 by the Enforcement Directorate (ED). A special court dealing with money-laundering cases had rejected his bail petition in March first week prompting him to move the HC.
But the ED opposed his bail saying “the former bureaucrat was powerful and he will influence the ongoing probe and witnesses in the case”. But Sivasankar cited his health conditions and said the “case was politically-motivated and the ED was using him as a pawn.” He said his arrest was a “political stunt” and there was no direct allegation against him. But additional solicitor general R Sankaranarayanan, who appeared for the ED, said “he was the kingpin and he could impede the probe if he was released on bail”. Later justice A Badharudeen accepted the ED’s contention and rejected his petition.
Alleged irregularities in Life Mission project came to light when central agencies were probing the gold smuggling case in July 2020 after the customs department seized 30 kg gold from a consignment that came to the UAE consulate camouflaged as a diplomatic bag.
When lockers of main accused in smuggling case Swapna Suresh were opened agencies got ₹1 crore cash and 2 kg gold. Later she reportedly told them that this was the commission she received for clinching a deal with the aid agency ‘Red Crescent’ which funded a project in Vadakancherry in Thrissur district for the flood-affected.
During investigation it was found that ₹18.50 crore was collected from Red Crescent through the UAE consulate in the state capital and only ₹14.50 crore were spent for the project. The rest of the money, ₹4 crore, was allegedly divided by government and consulate officials as their bribe. Swapna alleged that Sivashankar asked her to keep his part of share, ₹1 crore, in her locker. Besides Life Mission project, Sivasankar is also facing charges in smuggling case.