Kerala HC extends stay on Vijayan govt's embargo on PwC; case adjourned to January 2021

On Wednesday, the Kerala High Court extended the stay on the state government’s order pertaining to Pricewaterhouse Coopers (PwC). The order dated November 27 barred this international consultancy firm from participating in any projects of its Electronics and Information Technology Department for two years. This decision was stayed by a single-judge bench of Justice PV Usha on December 4. 

Senior advocate Mukul Rohatgi appeared for PwC before the HC. The court issued an extension of its interim direction after it learnt that the state government was yet to file a counter affidavit in the matter. The case is now likely to be heard on January 7, 2021.  

PwC questions Kerala government's rationale for a ban

The Pinarayi Vijayan-led government alleged that PwC did not perform a "comprehensive background" check including educational qualifications while appointing individuals for the Space Park project. Incidentally, Kerala gold smuggling accused Swapna Suresh was recruited through PwC for this project under the aegis of the state I-T Department. In July, the Kerala Police booked Suresh and two other firms including PwC under Sections 406 (criminal breach of trust), 420 (cheating), 465 (forgery) and 471 (using as genuine a forged document) of the Indian Penal Code. It has been alleged that Suresh used a fake B.Com degree certificate to secure this appointment.

In its petition in the Kerala HC, PwC not only questioned the "arbitrary procedure" to blacklist but also argued that the two-year ban was violative of Article 14 of the Constitution. It placed on record that Swapna Suresh was appointed on the recommendation of the Managing Director of the Kerala State Information Technology Infrastructure Limited. Asserting that it did a full background check, the consultancy also claimed that it was not allowed to defend itself before the ban was put in place. 

Read: Kerala Gold Smuggling: CM's Additional Secy Raveendran Seeks HC Stay On ED Summons

Accused in the gold smuggling scam

On July 5, Customs officials seized 30 kg of gold worth Rs.15 crore at the Thiruvananthapuram Airport from a diplomatic cargo addressed to a person in the UAE Consulate. Sarith Kumar, who worked at the UAE Consulate was arrested in this regard. Reportedly, he told the Customs about the role of Swapna Suresh. Following the backlash over her appointment, she was sacked by the state government a day later. Since being arrested on July 11, Suresh has remained in custody. She has been interrogated by various investigative agencies including the Customs, the NIA and the ED in connection with the gold smuggling scam. 

Read: Kerala Gold Smuggling: HC Adjourns CM's Ex-aide Sivasankar's Bail Plea Hearing To Dec 18