Corruption charges against Baalu rocks Parliament

The corruption charges against the DMK leader and the Union Minster T R Baalu for misusing his office sent the UPA government at the back foot on Thursday when the Prime Minister Office was repeatedly being asked to clear its stand and make an official statement on the issue.

The Opposition stalled the Rajya Sabha proceeding for the third consecutive days and the House was adjourned over the controversy amidst Opposition demanding Ballu to step down.

•   E-mail Article
•   Printer Friendly
•   Text-Size    

The stalemate in the Rajya Sabha seems to continue till Friday since the Business Advisory Committee (BAC) of the house had not taken decision on the issue.

The AIADMK chief Jayalalithaa backed up by other opposition parties started bombarding her natural contender DMK and accused PMO for manipulating with Baalu to pressurise the petroleum ministry for supplying natural gas to companies owned by his sons and other family members.

The opposition alleged Baalu for not only putting a word to his friend the petroleum minister for supplying gas to Kings Chemical and Kings High Power - the two companies owned by the minister and his family also got the PMO favour to push for it.

King Power Corporation, a power plant that hardly exists is run by his son Selva Kumar and King Chemicals, a petroleum plant that has been declared sick under the Board for Industrial and Financial Reconstruction (BIFR) run by his another son Raj Kumar.

As per the source Baalu has been pushing ONGC and GAIL for supplying gas to his sons’ companies ever since it got a prized commodity.

Baalu himself admitted on Thursday in the Rajya Sabha that he had talked with the petroleum minister for allocation of gas to a company, of which he was the managing director in the past. “I put in a word with the petroleum minister. What is wrong in it?” Baalu had retorted after Maitreyan, an AIADMK member said that the minister had misused his official position to get gas for two companies owned by his sons.

The reason for taking favour of the petroleum minister as said by the sources was Baalu wanted gas at the administered price of $1.96 per million British thermal units (mBtu) when it’s being sold anywhere between $6-$16 per mBtu.

As per the official record the PMO has written not one or two but a string of eight letters between November 2007 and February 2008 reminding the petroleum ministry to expedite gas allocations to his company- King India Power Corporation. Ironically, the petroleum ministry neither heeded to Baalu nor to the PMO.

“Kings Chemicals has been allotted about 10,000 cubic metre of gas by Gas Authority of India (GAIL). To rehabilitate the Kings Chemicals Company, Kings High Power has approached GAIL; they have provided 4.5 lakh cubic metre gas to see that power is produced out of gas,” admitted Baalu.

The recent controversy has its origin in the past during NDA government in which DMK was a crucial ally. Baalu after getting favour of the then petroleum minister Ram Naik succeeded in availing 10,000 SCMD gas allocated for King Chemicals and 0.5 MSCMD for King Power in 1999.

But the gas supply agreement lapsed in the course of time owing to the delayed signing of the transportation contract for it. Later the matter was taken to Madras High Court, which gave order in favour of Baalu. The court also directed the issue be resolved by the Petroleum Ministry.

Rule 255

Along side the corruption charged against Union Shipping and Transportation Minister T R Baalu, Thursday also made a mark in the history of Upper House when the Chairman Hamid Ansari ordered AIADMK leader V Maitreyan to leave the House for defying the Chair and continuing with his demand for the response of Prime Minister on the issue.

It was only the second time in the history of Parliament when a member has been asked to leave the House under Rule 255. The rule instructs that the Chairman may direct any member to leave immediately the House if s/he thinks the member's conduct has been disgustingly against the prestige of the House.