Chennai: Loss of Rs 375 crore in new secretariat case, says government

Chennai: The state government has informed the Madras high court that there was a loss of Rs 375 crore to the exchequer in the construction of new secretariat by the then DMK regime.

Advocate general Vijay Narayan made this submission when the appeal filed by DMK president M.K. Stalin came up for hearing before a division bench comprising justices Huluvadi G. Ramesh and K. Kalyanasundaram on Wednesday.

In his appeal, Stalin sought to set aside an order of the single judge, which directed the justice R. Regupathy commission of inquiry to hand over the records to the state government, which in turn scrutinise the same and if prima facie case was found, then institute criminal prosecution.

Advocate general said the commission of inquiry, probing the alleged irregularities in the construction of new secretariat, had appointed an officer in the rank of superintendent of police to inquire into the allegations. The officer in her report said there was a loss of Rs 375 crore to the public exchequer in the construction of the new secretariat. Following this, the government referred the matter to DVAC to conduct the probe, he added.

Senior counsel P. Wilson appearing for Stalin submitted that the materials collected during the course of commission of inquiry cannot be used as the commission itself has not tested the veracity or authenticity of the report. The commission has to approve the report by way of final report, which has to be placed before the legislature as per the Commission of Inquiry Act. Only then the report/materials can be used. The direction given by the single judge to the government to hand over the materials collected by the commission of inquiry to the DVAC was an interim order, which was not saved in the final order, when it was dismissed as abated following the death of M. Karunanidhi (the petitioner). The interim order cannot survive independently and the main petition has been dismissed as abated.

The government without noting the subsequent abatement order considered that the interim order still existing and directed the DVAC to investigate based upon the interim order, which was not in existence. This approachof the government was illegal, Wilson added.

Posting to November 2, further hearing of the case, the bench extended the order of status quo till then.