The Kerala High Court on Wednesday asked the CBI to inform the court whether funds received by the Unitac Builders Private Ltd. as part of the LIFE Mission project would come under the definition of foreign contribution and whether the Mission and the company had been exempted from foreign contribution regulation laws.
Justice V.G. Arun passed the directive while hearing arguments on a writ petition filed by Santhosh Eapen of Unitac Builders Private Ltd. seeking to quash the FIR registered against him in connection with the construction of homes under the LIFE Mission project at Wadakanchery, Thrissur.
The CBI counsel submitted that LIFE Mission would come under the purview of the Act and kickbacks were involved in the deal.
Petitioner’s contention
The petitioner had said that he had handed over crores of rupees to several persons at the instructions of Swapna Suresh, prime accused in the diplomatic gold smuggling case.
A foreign contribution received should not be diverted for any other purpose. In fact, investigation had to be carried out to find out whether the money had been transferred to officials of LIFE Mission or not.
The petitioner had himself pointed out that money had been given to the economic head of the UAE consulate, the CBI said.
The petitioner said that it was the UAE consulate which had awarded the contract to the petitioner for constructing residential apartments and a hospital in Wadakanchery under of Kerala’s LIFE Mission project.
What the FIR says
The FIR had alleged commission of offences under Sections 3 and 35 of the Foreign Contribution (Regulation) Act (FCRA) against the petitioner and LIFE Mission officials.
The company also pointed out that the construction was undertaken following an agreement executed between the company and the UAE based on an MoU signed between the State government and the UAE-Red Crescent.
The petitioner pointed out that the contribution received towards the cost of goods/service rendered could not be considered foreign contribution as per the 3rd explanation of Section 2[h] of the Act.
Besides,the LIFE Mission was exempted from the provision of the Act through a notification issued by the Central government .The petitioner was only executing the works as a part of the LIFE Mission project of the government.
