'Ex-PWD Secretary showed undue interest in Singapore firm'

By K.T. Sangameswaran

CHENNAI, NOV. 28. The former PWD Secretary, Mr. V. Sundaram, showed an ``undue interest'' in importing coal through a Singapore company, a defence counsel in the case of `coal import deal' during the previous AIADMK rule, told the Special Court today.

Resuming his arguments before Mr. S.S.P. Darwesh, Special Judge- II, counsel for the third accused, Mr. T.V. Venkataraman, said evidence placed before the court would show that the coal stock position was ``very bad'' and justified the import of coal by the TNEB. Coal had to be purchased from foreign countries as the indigenous variety was of poor quality.

When the proposal to import two million tonnes of coal was approved by the board, Mr. Sundaram, cited as a prosecution witness in the case, was also present at the meeting, counsel, Mr. K.M. Santhanagopalan, said. The then PWD Secretary was all along pressing for ABL, a Government of India undertaking, which company was for importing coal through Power and Energy Ltd., Singapore. Both the Singapore company and its Indian associate in Chennai, Mala Export Corporation, had obtained the tender forms, but did not participate in the tender. Mr. Sundaram had recommended the Union Government company, which the counsel said, was dealing only in boilers and not coal. It was also a sick unit. Mr. Sundaram was interested in giving the import order to a company which was not dealing in coal. Even though the Union Government suggested ABL, only the lawful method of open tender system was followed, counsel argued.

While the former Chief Minister, Ms. Jayalalithaa, has been cited as the main accused, the other accused include her erstwhile colleague in the PWD department and president of Makkal Tamil Desam, Mr. S. Kannappan, the former Chief Secretary, Mr.T.V. Venkataraman, the then Chairman, TNEB, Mr. N. Haribhaskar, and the former Finance Secretary, Mr. N. Narayanan.

The allegation is that the accused along with five suppliers conspired in connection with the import of coal thereby causing a wrongful loss of about Rs. 6.50 crores to the TNEB.

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