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SNC Lavalin case: SC to re-examine Kerala CM Vijayan’s discharge in case

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8 years ago

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SNC Lavalin case: SC to re-examine Kerala CM Vijayan's discharge in case

SC admits CBI’s appeal against discharge of Pinarayi Vijayan and others in the case by Kerala HC, stays trial till further orders

In a move that could have serious political ramifications in Kerala, the Supreme Court on Thursday (January 11) admitted an appeal by the CBI challenging the discharge of chief minister Pinarayi Vijayan and two others in the SNC Lavalin corruption case by the Kerala High Court.

The apex court, which is hearing an appeal filed by other accused in the case who had not been discharged by the Kerala High Court, stayed the trial till further orders and issued notices to Vijayan, K. Mohanachandran and A Francis. Mohanachandran and Francis were senior officials in the Kerala government’s department of power in the 1990s when the alleged SNC Lavalin scam took place while Vijayan was the state’s energy minister.

Vijayan and the two others had been discharged in the case by the Kerala High Court in August last year. The CBI had appealed to the apex court against their discharge from all criminal and corruption charges and argued that the case needed to be re-heard.

On Thursday, a Bench of Justices NV Ramana and S Abdul Nazeer issued notice on the CBI appeal to Vijayan – now the Kerala chief minister – and the two former bureaucrats of the Kerala power department. However, the apex court dismissed the discharge petitions moved by KG Rajasekharan Nair, then Member (Accounts) of the Kerala State Electricity Board (KSEB) and Kasthuriranga Iyer, who was Chief Engineer (Generation) in the Board.

Nair and Iyer had submitted before the apex court that they should have been treated at par with Vijayan and the other two accused who had been discharged in the case. The Bench has now asked the CBI to counter the submissions made by Nair and Iyer.

Additional Solicitor General Tushar Mehta told the Bench: “I have a problem with the release of some accused alone” while asserting that the Kerala High Court had overstepped its jurisdiction under Article 227 of the Constitution and that the SNC Lavalin case needed to be re-heard. The CBI also told the apex court that there was “ample material to show the involvement” of Vijayan in the SNC Lavalin deal involving the award of contracts for the renovation of the three hydel power projects in Kerala in the 1990s.

The CBI said that the Kerala High Court had accused the premier investigation agency of adopting a “pick and choose” policy in naming the accused in the case but had employed the same tool while discharging Vijayan and some others from the case and leaving the rest of the charge-sheeted persons to face trial.

“All decisions [in the Lavalin deal) were taken with the knowledge of all the accused persons named in the charge sheet… discharge of the accused may lead to miscarriage of justice and delay the trial,” the CBI petition has contended.

“It is a matter of fact that there was ample material to prima facie show conspiracy in the matter, which may have been appreciated at the stage of trial only,” it said.

Appearing for the appellants in the case, senior advocate Mukul Rohatgi urged the Bench to grant status quo on the trial proceedings stating that appeals made against earlier orders in the case by the Kerala High Court were pending before the Supreme Court.

“We have not been discharged. Continuation of trial will be detrimental to us now,” Rohatgi said on behalf of his client.

All accused, except the three discharged – including Kerala chief minister Pinarayi Vijayan – are facing trial for causing a loss of Rs 86.25 crore in the KSEB’s contracts with Canadian company SNC Lavalin for the renovation and modernisation of Pallivasai, Sengulam and Panniar hydroelectric power projects in Idukki district of Kerala.

The work was awarded to Lavalin, which was a consultancy firm, allegedly without inviting any tenders for the works that were estimated to cost Rs 243.74 crore. By the time work was completed, the costs had escalated to Rs 374.5 crore. Besides, the KSEB had failed to execute a binding agreement from Lavalin for a grant of Rs 98.3 crore for the construction of the Malabar Cancer Centre. A criminal case was registered on February 12, 2007 and the CBI filed its charge sheet on June 12, 2009.

For several years since the alleged scam broke, it was the cause of much political discomfiture for Vijayan. Political observers in Kerala claim that his alleged role in the SNC Lavalin scam is what had stalled his elevation to the Kerala chief minister’s post in May 2006 when the Left Front won the state assembly polls. The post eventually went to Vijayan’s senior and bitter rival VS Achuthanandan despite the latter’s advancing age.

In the run up to the May 2016 Kerala Assembly polls, the then incumbent Congress-led coalition government under Oomen Chandy, which was also facing charges of corruption, had sought to rake up Vijayan’s alleged involvement in the Lavalin scam hoping to dent the Left Front’s imminent romp to power in the state.

Less than a year after Vijayan became chief minister, the Kerala High Court discharged him in the Lavalin case giving him the much needed political and moral high ground to challenge the alleged corruption of his predecessor’s government and also hit out at Prime Minister Narendra Modi’s BJP government at the Centre.

Over the past two years, Vijayan has been one of the most strident critics of the BJP among the Opposition leaders from across the country and has systematically succeeded in ensuring that the saffron party’s plans of making political inroads in Kerala do not succeed. His stature within the Left Front, more specifically the CPI (M), has also seen a meteoric rise and he has consolidated his position as the undisputed leader of the Kerala faction of the party, along with Prakash Karat. It was Vijayan’s ‘veto’ that dashed the party’s Bengal faction’s effort of securing a third Rajya Sabha term for Sitaram Yechury last year.

However, with the possibility of the SC now re-examining his discharge in the SNC Lavalin case and ordering that he stand trial for the over-two decade old alleged scam, tough political times lie ahead for Vijayan.

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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

Published

3 hours ago

on

December 5, 2025

By

Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

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IndiGo flight chaos deepens as over 500 services cancelled, passengers stranded for hours

Over 500 IndiGo flights were cancelled nationwide, leaving passengers stranded without food, clarity or their luggage as airports struggled to manage the disruption.

Published

4 hours ago

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December 5, 2025

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IndiGo flight

India’s largest airline continued to face massive operational breakdowns, triggering frustration among travellers at major airports across the country. From piles of unattended suitcases to passengers waiting over 12 hours without food or clarity, the disruption stretched into its fourth consecutive day.

Long delays, no communication leave passengers anguished

Several travellers at Delhi airport described the situation as “mental torture”, as thousands of unclaimed suitcases lay scattered across the terminal. Many slept on the floor, while others expressed anger over the lack of communication from airline staff.

One flier said he had been waiting for over 12 hours without any explanation: “Every time they say one-hour or two-hour delays. We were going to a wedding but don’t even have our luggage.”

A passenger in Hyderabad recounted a similar ordeal, saying the flight was delayed indefinitely with no food, water, or updates from the airline. At the airport, some travellers blocked an Air India flight in protest over the lack of arrangements.

Goa and Chennai airports also witnessed tense moments. Videos from Goa showed fliers shouting at IndiGo staff as police attempted to calm the situation. At Chennai, CISF denied entry to IndiGo passengers due to heavy congestion.

Major metro airports impacted; cascading cancellations nationwide

Flight cancellations and delays were reported across multiple airports:

  • Over 200 flights were cancelled in Delhi
  • More than 100 each in Mumbai and Bengaluru
  • Around 90 in Hyderabad
  • Dozens more in Pune, Vishakhapatnam, Chennai and Bhopal

Pune airport stated that parking bay congestion worsened the situation, as several IndiGo aircraft remained grounded due to lack of crew. Other airlines continued operations without disruption.

Airport authorities said they had mobilised additional manpower for crowd control and passenger support.

IndiGo admits planning lapses, says more cancellations expected

The airline acknowledged a “misjudgment” in assessing crew requirements under revised night-duty norms, which it said created planning gaps. Winter weather and airport congestion further aggravated the crisis.

IndiGo informed the aviation ministry and DGCA that some regulatory changes—such as the shift in night-duty timings and a cap on night landings—have been rolled back temporarily to stabilise operations.

The airline warned that cancellations may continue for another two to three days, and from December 8, schedules will be trimmed to prevent further disruption.

In a message to employees, CEO Pieter Elbers said restoring punctuality would not be an “easy target”.

Airline issues apology amid nationwide frustration

In a late-night statement, IndiGo apologised to customers and industry partners, acknowledging the widespread inconvenience caused by the disruptions. The airline said all teams were working with authorities to bring operations back to normal.

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Delhi to install 305 mist sprayers across 9 major pollution hotspots

Chief Minister Rekha Gupta announced that 305 mist sprayers will be installed across nine pollution hotspots in Delhi, alongside expert-led planning and coordinated measures to reduce dust and biomass-related pollution.

Published

18 hours ago

on

December 4, 2025

By

Delhi-NCR air quality

The Delhi government has announced a large-scale deployment of mist sprayer technology to tackle rising air pollution, with Chief Minister Rekha Gupta confirming that 305 mist sprayers will be installed across nine pollution hotspots in the capital.

Mist sprayers to curb dust at critical locations

During an inspection at ITO, Gupta said the mist sprayers already operational at the site are performing effectively. She noted that 35 poles at ITO have been fitted with these machines, which are helping suppress dust—a major contributor to air pollution in Delhi.

According to the Chief Minister, trials conducted in certain NDMC areas have shown promising results, reinforcing confidence in the technology.

High-level committee to guide pollution-control measures

Gupta announced the formation of a high-level expert committee that will advise the government on effective measures to reduce pollution. The panel will include senior officials from various departments as well as environmental specialists, including experts from IITs. Officials stated that the committee will receive special powers to implement pollution-mitigation strategies.

Departments directed to repair roads, add greenery

The Chief Minister said departments including PWD, DSIIDC and DDA have been instructed to fix potholes, repair and carpet roads, plant foliage along dividers and islands, and take other measures to reduce pollution sources.

She urged residents to report potholes on the government portal for quicker action.

Appeal to RWAs to prevent biomass burning

To curb winter pollution, Gupta advised Resident Welfare Associations (RWAs) to distribute electric heaters to security guards to discourage biomass burning, which significantly contributes to seasonal pollution spikes.

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