KOCHI: The High Court on Tuesday said a criminal conspiracy to divert the foreign contribution to third parties — Unitac Builders and Developers and Sane Ventures LLP — was prima facie evident. The fact that there was no agreement between UAE Red Crescent and the state government other than the MoU on the financial aid for LIFE Mission housing project at Wadakkanchery pointed to this. The state had argued that the framework of the agreement that Red Crescent entered with the contractors does not have any legal relationship with LIFE Mission or the government.
The government or LIFE Mission has no role in the construction of the housing units through a contractor or builder of the choice of the sponsor — UAE Red Crescent. The court said the LIFE Mission CEO had perpetrated delinquency by accepting intervention of third parties and permitting them to proceed with the construction. He even offered all help in obtaining the necessary plan and permit approvals from the local body. Justice P Somarajan also stated that the UAE consul-general, who entered into the agreements with the two companies, had played a considerable role for getting kickbacks by acting as a middleman in the transfer of foreign contribution from the Red Crescent.
The foreign contribution was effectively diverted by manipulating the two agreements and inducting strangers (Unitac and Sane Ventures), without the knowledge of the fund provider and the beneficiary to get kickbacks with the connivance and help of IAS officials involved with the project, including the LIFE Mission CEO.
The extent of foul play by these officials in creating the two agreements and inducting the two companies in the deal to obtain kickbacks by avoiding audit by CAG is prima facie evident. Hence, neither Unitac MD Santhosh Eapen nor the officials under the LIFE Mission who had done all these mischiefs can escape from criminal liability.
Unitac Builders and Sane Ventures got the foreign contribution as they were allowed to enter into separate agreements with the UAE Consulate. Hence, there is a prima facie case to be investigated by the CBI. Santhosh Eapen, in his writ petition, had admitted the involvement of kickbacks and gratification. This shows his alleged role in the offence and he cannot escape from liability.