KOCHI: The Enforcement Directorate, which is probing the sensational SNC Lavalin scam allegedly involving Chief Minister Pinarayi Vijayan, has issued summons to the Vice-President and the Director (Finance) of the SNC Lavalin Engineering India Pvt Ltd in Mumbai, directing them to produce seven crucial documents including the details of the company’s offices in India and abroad. The summons issued by Vikas Mehta, Deputy Director, ED, Kochi, also directed the duo to produce details of all properties purchased in the name of SNC Lavalin.
After the ED issued its first summons on February 25, the Vice-President and the company had filed a response on March 10 and 16 respectively, but did not produce the details sought by the central agency. Later, the ED issued another summons on April 8 to the Director (Finance) of the firm in Mumbai, asking him to appear in its office with the documents.
The ED had also directed them to produce two recent passport size photos, Aadhaar card or Pan card and passport, details of the company’s stakeholders and bank accounts in India and abroad, documents on the properties purchased under the firm’s name, and a copy of memorandum and articles of association of SNC Lavalin.
In its reply to ED, the company said “the summons does not disclose in connection with which case is the investigation under the Prevention of Money Laundering Act (PMLA) being conducted. To the best of our knowledge, there is no case (scheduled offence) pending against us. We, therefore, are at a loss to understand the reason for issuing the summons to our address.” It also stated that there is no entity by the name SNC Lavalin, India, registered at the Gurgaon address, in which first summons was sent.
The ED initiated a probe into the alleged scam based on a letter sent by journalist-activist T P Nandakumar to the Director-General, Directorate of Revenue Intelligence, on March 10, 2006, alleging tax evasion and anti-national activities by certain political leaders in Kerala. In the complaint, he had pointed out an alleged financial fraud in connection with the SNC Lavalin deal. Nandakumar, who was summoned by the ED four times, told TNIE he had submitted crucial evidence against political leaders including Pinarayi Vijayan.
The complaint stated that the government awarded the supply contract of three hydroelectric projects -- Pallivasal, Sengulam and Panniar (PSP) -- to the consultant SNC Lavalin Renovation and Modernisation on February 10, 1997, on a fixed rate basis, at Rs 243.98 crore.
In lieu of the same, SNC Lavalin offered a financial aid of Rs 98.3 crore for the construction of the Malabar Cancer Centre at Thalassery. However, they only arranged Rs 12.05 crore, which too was spent through their own agent M/s Technicalia Consultants Pvt Ltd. The complainant urged ED to find out what happened to the balance amount of Rs 86.25 crore.