Kerala gold smuggling case: ED arrests suspended IAS officer, opposition heat on Vijayan

Suspended IAS officer K Sivasankar was arrested by Enforcement Directorate on Wednesday in sensational gold smuggling case, hours after he lost a legal battle in Kerala High Court for anticipatory bail.

ED, probing money trail in case, arrested former principal secretary to Kerala Chief Minister Pinarayi Vijayan after six hours of interrogation at its Kochi office, latest in a series of grilling by central ncies, official sources said.

Opposition Congress and BJP mounted pressure on Vijayan following ED action against his former secretary, demanding his resignation, while ruling LDF said it wanted all culprits in case to be punished.

Earlier in day, ncy moved swiftly to take custody of Sivasankar from an Ayurveda hospital in Thiruvananthapuram, where he h been undergoing treatment, minutes after high court dismissed his anticipatory bail plea, and took him to Kochi in a car for interrogation.

high court dismissed two separate anticipatory bail pleas filed by Sivasankar apprehending arrest by Customs investigating smuggling angle and ED, observing re was clear indication that IAS officer was very close to prime accused in smuggling case Swapna Suresh.

Congress and BJP stepped up pressure on Chief Minister to quit after Sivasankar was taken into ED custody.

Protests were held at different parts of state, including in front of secretariat in Thiruvananthapuram, by opposition parties and ir youth wings demanding resignation of Vijayan, who has been maintaining that his government would t shield anyone involved in case.

protesters burnt effigies of Vijayan in some places.

National Investigation ncy, Customs and ED are conducting separate probes into seizure of gold worth nearly Rs 15 crore from a "diplomatic bagg" of UAE consulate at Thiruvananthapuram airport on July 5.

Several people, including two former employees of UAE consulate in Thiruvananthapuram, Suresh and Sarith P S, have been arrested by central ncies so far.

NIA and Customs have also earlier questioned Sivasankar, who was suspended in July after his alleged links with Suresh surfaced.

Dismissing Sivasankar's anticipatory bail plea in ED case, high court observed that ncy was relying on statements given by him as also prime accused Suresh and his chartered accountant Venugopal.

re is clear indication that IAS officer was very close to Suresh. Sivasankar h discussed about deposit of amounts belonging to Suresh with his chartered accountant.

officer h introduced her to chartered accountant and h asked him to sort out her financial problems, Justice Ashok Men said in order.

court furr said statements given by accountant and Suresh strongly indicate " involvement" of Sivasankar.

"It is alleged to be in consequence of directions given by applicant that Swapna Suresh and Chartered Accountant (Venugopal) opened a locker in State Bank of India, Thiruvananthapuram Branch. Both of m h rights to operate locker." "Even though applicant (Sivasankar) has disassociated himself from activities pertaining to deposit of amounts in locker, re is some indication in communications between him and chartered accountant regarding applicant overseeing manment of finances of Swapna Suresh", court said.

ting that ED has t yet concluded wher applicant is to be me an accused or a witness in crime, court said re are strong indications pointed out by ncy to suggest that applicant may be a person involved in money laundering with Suresh.

"Probably re may t be sufficient evidence at present collected by ED to implicate applicant as an accused, and re also may t be sufficient evidence to suggest that he is guilty of offences alleged.

"But, y have sufficient materials to interrogate him, for which he is bound to cooperate, as a senior government official", court said dismissing bail plea.

Rejecting contentions me by Sivasankar that he was connected with affairs of government and h in such capacity interacted with Suresh, n secretary to Consulate General, UAE, court observed that "if that be so, re is need for him to interfere in matters concerning manment of her finances." court said fact that he was in constant touch with Suresh and even volunteered to help her by contacting his accountant indicates that re is a possibility that he knew her involvement in "smuggling activity." Reacting to development, Leer of Opposition in state assembly Ramesh Chennithala demanded resignation of chief minister.

"Without furr justifying Sivasankar, CM should step down from post. It was Chief Minister's Office that me all moves to protect accused in gold smuggling case," Congress leer alleged.

BJP state chief K Surendran said that it has w become clear that CMO intervened in gold smuggling case.

"When ncies question Sivasankar, more details will come out. court order has cornered Left government in state.

As investigation progresses, involvement of chief minister and his office will become clear," Surendran told reporters.

Law Minister A K Balan said government wanted all culprits in case to be brought to book and extended support to central ncies in probe.

" chief minister has sought a comprehensive probe by central ncies on July 8.. we just want law to take its course.

Also, ncies have t complained against state government as we have provided necessary assistance to m for investigation," Balan told media.