Former Industries Minister E.P. Jayarajan’s prospect of getting cleared of the charge of nepotism that led to his dramatic resignation as Minister in October last appeared to have improved on Wednesday.
Legal Adviser, Vigilance and Anti-Corruption Bureau (VACB), C.C. Augustine’s recent opinion that the case against Mr. Jayarajan would not stand constitutional scrutiny was widely viewed in administrative and legal circles as an early indication of the purported move to drop the case against the Communist Party of India (Marxist) [CPI(M)] strongman. Mr. Augustine’s line ran contrary to the previous view of the agency that Mr. Jayarajan had pushed aside two legally selected candidates to appoint his relative P.K. Sudheer as managing director (MD) of Kerala State Industrial Enterprises Limited (KSIE). Mr. Augustine opined that Mr. Jayarajan had caused no loss to the public exchequer. Mr. Sudheer never assumed office. The former Minister did not violate the company’s memorandum of association or bylaws. Moreover, the government was well within its rights to decide heads of State PSUs.
In contrast, the VACB’s preliminary probe into the questionable internal process that led to Mr. Sudheer’s controversial appointment found that the public sector Restructuring and Internal Audit Board (RIAB) had shortlisted 42 persons for various posts. It had proposed Manish Pratap Singh and B. Jyothikumar to the office of MD, KSIE. The ‘thwarted’ selection process cost RIAB ₹14,34,560.
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On September 30, 2016, Mr. Jayarajan ordered the appointment of Mr. Sudheer as Director and MD, KSIE “with immediate effect.”
He “did not obtain clearance from the VACB and ignored the persons in the select list submitted by the interview board”. The order was issued “without public interest and with the knowledge of Additional Chief Secretary of Industries Paul Antony,” the VACB had said in its quick verification report submitted in court.