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SC okays Jaya's trial in TIDCO scam: PTI

In a blow to All India Anna DMK chief J Jayalalitha, the Supreme Court on Friday directed a Madras special court to proceed with the trial in the corruption case against her and Board of Control for Cricket in India President A C Muthiah in the multi-crore Tamil Nadu Industrial Development Corporation bonds scam.

A bench comprising Justices K T Thomas and R P Sethi, hearing an appeal filed by the Central Bureau of Investigation, suspended the Madras high court order which had stayed the trial proceedings pending an appeal filed by Jayalalitha.

While issuing notices to Jayalalitha, Muthiah, former state industry secretary C Ramachandran and others, the bench said, "We suspend the Madras high court order and direct the trial court to proceed with the trial".

However, the apex court said the Madras court would not pronounce its judgment in the case without its prior permission.

Appearing for the CBI, Solicitor General Harish Salve submitted that the direction of the high court that the trial proceedings could go on till the stage of framing of charges against the accused and no further till the disposal of the appeal filed by Jayalalitha was contrary to law.

He said as per the provisions of Section 19(3)(c) of the Prevention of Corruption Act, 1988, the stay cannot be taken directly or indirectly.

Janata party president Subramanian Swamy had filed a petition before the Madras high court against Jayalalitha and other accused persons alleging that TIDCO lost Rs 77 crore by the favours given to Southern Petrochemicals Industries Corporation owned by Muthiah's father M A Chidambaram.

In November 1997, the director, vigilance and anti-corruption, Madras, registered a case under various provisions of the PC Act.

However, the high court in December 1997 directed the CBI to investigate the transactions relating to the renunciation by TIDCO of 2000 convertible bonds in SPIC, in which it held 26 per cent shares, with a view to ascertain the total loss that was caused to the government by such renunciation.

In August 2000, the CBI filed a chargesheet before the Madras special court against Jayalalitha, Ramachandran and A C Muthiah under various provisions of the PC Act read with Section 120-B of the Indian Penal Code.

Jayalalitha had challenged the legality of the chargesheet in a writ petition before the Madras high court, which on August 30 last year stayed the trial proceedings.

Salve pointed out to the apex court that the high court itself had recorded that it was not persuaded to stay the proceedings of the trial but limited it to the stage of recording of evidence.

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