Madras High Court transfers gutkha scam case to CBI

Source – indianexpress.com

In a major set back to the Tamil Nadu government, the Madras High Court on Thursday ordered a CBI probe into the multi-crore gutkha scam, in which state Health Minister C Vijaya Baskar, DGP T K Rajendran and former Chennai police commissioner S George are named as accused.

Transferring the probe to CBI, the first bench of Chief Justice Indira Banerjee and Justice Abdul Quddhose said “serious allegations, inter alia, against high police officials with regard to their complicity and connivance in the illegal business in gutkha and other forms of chewable tobacco, is likely to give rise to doubts in the minds of the general public with regard to their fairness, impartiality and/or efficacy of the investigation. It is therefore desirable that the investigation be made over to an independent agency like the CBI.” The HC order came on a PIL moved by DMK leader J Anbazhagan.

The scam came to light in July last year, when the income tax department conducted raids at the godown, offices and residences of a pan masala and gutkha manufacturer in Tamil Nadu over alleged tax evasion to the tune of Rs 250 crore. The department seized a diary containing the names of those who were believed to have been paid off by the gutkha manufacturers, and among them was Health Minister Baskar. The seizure of the diary and the alleged payments made to the minister and senior police officers gained significance as the manufacturing, storage and sale of chewable forms of tobacco were banned by the Tamil Nadu government in 2013.

The red colour ledger, similar to ‘Sahara Diary,’ seized by the I-T officials also had details of monthly payments made to at least two city police commissioners, including Rajendran, who later became the DGP, and George, an officer known for his close links to former chief minister J Jayalalithaa.

Soon after the order came, Opposition leader M K Stalin demanded the resignation of CM Edappadi K Palaniswami’s government to ensure a fair probe.