The UDF government in Kerala on Tuesday decided to withdraw the 22-year-old palm oil import case, which had cost PJ Thomas his job as former chief vigilance commissioner.
The government will move a petition in court, saying the decision to import palm oil was taken when the state was facing an acute edible oil shortage.
In 1991, the Kerala government had granted sanction for purchasing 15,000 tonnes of palm oil. The state reportedly lost `2.32 crore in the deal. PJ Thomas had been investigated for his role as the state’s food secretary.
However, opposition leader VS Achuthanandan said he would move the Supreme Court against the government’s decision.