Kochi, Mar 2 (PTI) A special court in Kerala on Thursday dismissed the bail plea of M Sivasankar, the former principal secretary to Kerala Chief Minister Pinarayi Vijayan, in connection with the alleged violation of the Foreign Contribution (Regulations) Act in the Life Mission, a flagship housing project of the Left government.

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Special Judge K K Balakrishnan said that in view of the nature and gravity of the offence involved and the investigation being in the preliminary stage, the petitioner cannot be released on bail.

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The court also said there was substance in the Enforcement Directorate (ED) contention that he can interfere in the probe by influencing witnesses as he retired as Secretary to Government of Kerala only on January 31 this year.

The special judge also noted that materials produced before it by the ED show that the subject matter of the allegations was money laundering "with wider ramifications".

"There are serious allegations involving huge quantities of foreign currencies, foreign organisation, collection of commission for the construction of homes under the Life Mission project of the Government of Kerala and active participation of the petitioner in all the alleged transactions..," the court said.

In his bail plea, Sivasankar had claimed his arrest was a "political stunt" and that the intention was to "falsely implicate him in the case and by extension the executive head of the state and his family members".

He had contended that he was being singled out for arrest when there were other accused who admitted to their role in the case, but were not arrested.

Sivasankar had sought bail also on medical grounds by claiming that he suffers from serious spinal cord related problems which could lead to a surgical emergency at any moment.

Moreover, he is also a cancer patient and has undergone surgery for that thrice, his plea had claimed.

The court, however, rejected the ground, saying that the petitioner has not shown any material indicating the surgery and in-patient treatment was advised to him prior to his arrest by the ED in the present case.

It also noted that Sivasankar had attended office till his retirement date of January 31 after getting bail in the earlier case lodged by CBI.

The court said it has already issued directions to the ED and the jail authorities to give him proper and sufficient medical care as and when required.

"Considering the stage of investigation in the case, there is no need to release him on bail... therefore, considering all facts and circumstances of the case, the health condition of the petitioner is not a ground for granting bail to him at this stage," the court said..

The CBI had in 2020 filed an FIR in a Kochi court under Section 120B of the Indian Penal Code and Section 35 of the Foreign Contribution (Regulation) Act (FCRA) 2010 on a complaint by the then Wadakkanchery Congress MLA Anil Akkara listing Santosh Eappen, Managing Director of Unitac Builder, Kochi as the first accused and Sane Ventures as the second accused.

The two companies had undertaken the construction based on the agreement entered with them by Red Crescent, an international humanitarian movement, which had agreed to provide Rs 20 crore towards the Life Mission project.

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