Vigilance claims proof against K M Mani

Kochi: The Vigilance and Anti-Corruption Bureau on Monday informed the Kerala High Court that it had gone  ahead with the FIR in the Rs 62-crore poultry farm corruption case against former finance minister K.M. Mani after getting ample evidence. The VACB filed an FIR against Mr Mani for giving undue favours to six poultry farmers under Thomson Group, a family business group based at  Kombodijamackal in Thrissur district,  and to the Association of Ayurvedic Cosmetic Manufacturers.

The statement filed by Mr Feroz M. Shafeeque, DySP, Vigilance and Anti-Corruption Bureau,  said  the two deputy commissioners (appeals), Tom Joseph and Josekutty George, who were dealing with the appeal of Thomson Group,  were transferred out by Mr Mani solely to suit the interest of the Thomson Group.  Mr V.J. Charles, who was posted in that place,  allowed the appeal filed by Thomson Group by setting aside the demand of Rs. 65 crore. 

Mr Tom Joseph, who is still in service, stated during the quick verification that Mr Mani  tried to influence him through his additional private secretary Jayachandran to issue a verdict in favour of poultry dealers. When he objected to act illegally, he was transferred out.  He  specifically stated that he was transferred as he refused  to act as per the illegal order from the office of the then finance minister. According to the VACB,  Mr Mani conspired with the Ayurvedic Cosmetic Manufacturers and illegally granted retrospective effect to the tax reduction of cosmetic products in the budget causing huge loss to the exchequer.

The Commissioner of Commercial Taxes issued a clarification on 12.11.2009 to the effect that the Ayurvedic Cosmetic products produced under drug licence granted under Drugs and Cosmetics Act should be taxed at 12.5 percent  instead of four percent  for ayurvedic medicines, which was the rate of tax from 2005 onwards. However, as per Finance Act, 2012,   these cosmetic products were made taxable at five percent.  This aspect needs in-depth investigation so as to assess the loss sustained to the exchequer, the VACB said.

Regarding the first allegation of favouring Thomson Group against the demand of penalty for tax evasion, it is revealed from the quick verification that  Mr Mani  had  abused his official position and without any authority ordered stay on the recovery proceedings amounting to Rs 65 crore  in favour of the poultry dealers when such authority was vested with the chief minister. Mr Mani had filed an appeal against the FIR.