AP High Court stays CID probe into Kuppam irrigation project

By S A Ishaqui
Hyderabad,March 13: The Andhra Pradesh High Court on Friday stayed further proceedings of the CID against the alleged irregularities in Kuppam irrigation project.
Mr Ahobala Rao, one of the officers in selecting the BHC Agro (India) Private Limited as consultant for taking up a pilot project for development of Kuppam block, filed a writ petition against the recommendations of Justice T.H.B. Chalapathi Commission and pursuant action of the government on the commission recommendation .
While staying further proceedings, justice G. Rohini directed the government to file the counter-affidavit in the matter.
The state government on February 14 ordered a CBCID probe into the alleged irregularities in choosing BHC Agro (India) Limited as consultants for the Kuppam project.The probe is seen as a face-saving measure since the government is in a tight spot over an order it issued in 2004 complimenting BHC Agro for its work on the project.
This GO (No.277) has become a major weapon in the hands of the company which has filed an arbitration suit against the state government in the High Court for terminating the contract.
Though the Justice T.H.B. Chalapathi Commission, in its inquiry report on the Kuppam issue, had recommended a CID investigation, the government’s decision to order it in the eleventh hour is apparently meant to browbeat BHC Agro which has presented the GO before the HC.
It has questioned how the government could terminate the contract of a company after complimenting it for its performance. The GO was issued on November 11, 2004, and the decision to annul the contract was taken in September 2005.