The Supreme Court on 11 January 2011 allowed the Kerala government to go ahead with the trial in 2.8-crore palmolein oil import scam, involving PJ Thomas, head of the Central Vigilance Commission (CVC). A bench comprising Justices Aftab Alam and RM Lodha vacated the stay on the trial after treating the appeal of former Kerala chief minister K Karunakaran as “abated” in view of his death on 23 December 2010. The Kerela Government had moved the Supreme Court seeking vacation of its stay on the trial in the palmolein oil import case of 1992 in which Thomas is an accused. The apex court had in August 2007 stayed proceedings in the case before a designated CBI court in Kerala.
The palmolein oil import case pertains to the import of palm oil from a Singapore firm at allegedly higher prices higher compared to the international rate. 15000 tonne of palm oil was imported at a rate of $405 per tonne whereas the market price was $392.25 per tonne. As secretary, food and civil supplies, Thomas had issued the government order for the import, which caused a loss to the state exchequer. The charge sheet in the palmolein oil import case was filed in 2000 against Karunakaran and seven senior state government officials, including Thomas, who was then Kerala food secretary.
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