Two days after the State government ordered a Vigilance probe to look into the allegations of wrongdoings in the LIFE Mission housing project in Thrissur, the Central Bureau of Investigation (CBI) has filed a First Information Report (FIR) in a Kochi court for allegedly violating the provisions of the Foreign Contribution (Regulation) Act.
The FIR was filed at the Chief Judicial Magistrate Court, Ernakulam, by invoking Section 35 of the Act, according to sources.
Section 35
Section 35 deals with punishment for accepting or assisting any person, political party or organisation, any foreign contribution or any currency or security from a foreign source, in contravention of the provisions of the Act.
The Act prescribes a punishment of imprisonment up to five years, or with fine, or with both for such violations.
The controversy
The ambitious housing project of the LDF government had courted controversy after Swapna Suresh, one of the accused in the diplomatic baggage gold smuggling case, confided to the Enforcement Directorate that the ₹1 crore cash found in the safe locker of her bank was the commission received for channelling foreign aid to the builder who was constructing the houses.
Red Crescent, a UAE-based organisation had pumped in around ₹20 crore for the project to build 140 houses for the landless and homeless families and a medical facility in Thrissur.
As the Opposition demanded a probe into the alleged violations of rules, Chief Minister Pinarayi Vijayan maintained that the Mission had not directly dealt with the organisation.
He also stated that the it was the Red Crescent which contracted the builder and not the government.
Vigilance probe
The State government had asked its Vigilance wing to hold a preliminary inquiry to find out whether a cognizable offence could be made out of the deal. It has also been asked to probe whether the public exchequer suffered any loss.
The Vigilance has also been asked to ascertain whether any laws were flouted regarding the funds that were received for the project.
