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SC sets aside HC order on CBI probe into Cogentrix 'kickbacks'

The Supreme Court today set aside a Karnataka high court judgment directing the Central Bureau of Investigation to probe into the alleged kickbacks paid in the commissioning of the controversial 1000 mega-watt Mangalore power project, which was being jointly built by Cogentrix and the China Light and Power Company.

The much-awaited verdict setting aside the high court judgment was delivered by a division bench comprising Justice S Saghir Ahmad and Justice S Rajendra Babu.

The bench thereby allowed appeals filed by the Karnataka government, Karnataka State Electricity Board and CLP against the impugned high court judgment.

The court dismissed a Special Leave Petition by Arun Kumar Aggarwal on whose Public Interest Litigation the high court had ordered the CBI probe.

Cogentrix had on December 9 announced its withdrawal from the Rs 39.48 billion project. One of the reasons given by Cogentrix for its decision to withdraw from project was the inordinate delay in the pronouncement of the judgment in the case. The judgment in the case was reserved in January 1999.

The project was given a techno-economic clearance by the Central Electricity Authority in July 1996.

Karnataka Chief Minister S M Krishna today thanked the Supreme Court for its verdict on the Cogentrix issue.

Talking to newsmen at Mandya, 90 km from Bangalore, he said "I am thankful to the Supreme Court".

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