Palmolein Oil Import Scam
Encyclopedia
The Palmolein Oil Import Scam occurred during the year 1991-92 in the Kerala
state. K. Karunakaran was the chief minister of the state and the ruling party was United Democratic Front
. This was his fourth term as chief minister of the state. Former Chief Vigilance Commissioner P J Thomas was the Secretary of Food & Civil Supplies at that time. Thomas was shunted from the CVC's post by the Supreme Court of India because the court found that "Mr. Thomas was accused No. 8 in the Kerala palmolein case pending in the Court of the Special Judge, Thiruvananthapuram, for offences under Section 13(2) read with 13(1) (d) of the Prevention of Corruption Act, 1988 and under Section 120B (conspiracy) of the Indian Penal Code".
from a Malaysian company in Singapore
named "Power and Energy Ltd" above the international price which was approved by the Kerala Cabinet. The price of import was fixed to $405.0 per ton which was higher than the international price of $392.25 per ton. The import order was signed by Thomas, who was then Kerala's Food Secretary. The investigation agency's charge sheet in the case says that this order caused a loss of more than 2.32 cores to the exchequer
. The decision was to import 15,000 tonnes of palm oil.
The opposition cried foul in the import. A vigilance case was filed against K. Karunakaran and seven others including Thomas. Thomas was bailed in 2003. A Special Leave Petition by the late K. Karunakaran made the Supreme Court
stay the proceedings. The court closed the proceedings against K. Karunakaran after his death in December 2010.
The case was reopen in March 2011. In August 2011, Oommen Chandy
, the Chief Minister of Kerala, was also added to the re investigation. The court asked the vigilance and anti-corruption bureau to submit its investigation report of the palmolein case by November 10, 2011.
Kerala
or Keralam is an Indian state located on the Malabar coast of south-west India. It was created on 1 November 1956 by the States Reorganisation Act by combining various Malayalam speaking regions....
state. K. Karunakaran was the chief minister of the state and the ruling party was United Democratic Front
United Democratic Front (India)
United Democratic Front is an alliance of political parties of Kerala state in India. This alliance is led by the Indian National Congress....
. This was his fourth term as chief minister of the state. Former Chief Vigilance Commissioner P J Thomas was the Secretary of Food & Civil Supplies at that time. Thomas was shunted from the CVC's post by the Supreme Court of India because the court found that "Mr. Thomas was accused No. 8 in the Kerala palmolein case pending in the Court of the Special Judge, Thiruvananthapuram, for offences under Section 13(2) read with 13(1) (d) of the Prevention of Corruption Act, 1988 and under Section 120B (conspiracy) of the Indian Penal Code".
The Case
Kerala government decided to import palm oilPalm oil
Palm oil, coconut oil and palm kernel oil are edible plant oils derived from the fruits of palm trees. Palm oil is extracted from the pulp of the fruit of the oil palm Elaeis guineensis; palm kernel oil is derived from the kernel of the oil palm and coconut oil is derived from the kernel of the...
from a Malaysian company in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
named "Power and Energy Ltd" above the international price which was approved by the Kerala Cabinet. The price of import was fixed to $405.0 per ton which was higher than the international price of $392.25 per ton. The import order was signed by Thomas, who was then Kerala's Food Secretary. The investigation agency's charge sheet in the case says that this order caused a loss of more than 2.32 cores to the exchequer
Exchequer
The Exchequer is a government department of the United Kingdom responsible for the management and collection of taxation and other government revenues. The historical Exchequer developed judicial roles...
. The decision was to import 15,000 tonnes of palm oil.
The opposition cried foul in the import. A vigilance case was filed against K. Karunakaran and seven others including Thomas. Thomas was bailed in 2003. A Special Leave Petition by the late K. Karunakaran made the Supreme Court
Supreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
stay the proceedings. The court closed the proceedings against K. Karunakaran after his death in December 2010.
The case was reopen in March 2011. In August 2011, Oommen Chandy
Oommen Chandy
Oommen Chandy is an Indian politician and the current Chief Minister of Kerala. He has held the Chief Minister of Kerala position earlier from 2004 to 2006, and was the Leader of the Opposition in the Kerala Legislative Assembly from 2006 to 2011.-Early life:Oommen Chandy or 'Kunjoonju' was born...
, the Chief Minister of Kerala, was also added to the re investigation. The court asked the vigilance and anti-corruption bureau to submit its investigation report of the palmolein case by November 10, 2011.