In a massive setback for the Pinarayi Vijayan-led Left Democratic Front government, the Kerala High Court has dismissed petitions challenging CBI probe into Kerala government's LIFE Mission Project

The agency had moved the high court seeking to lift the interim stay on the investigation into the scam involving Kerala government's housing project for the homeless. 

The court held that the "alleged misdeeds were done during the implementation of Life Mission project. That suggests the involvement of high officials. However, the liability for the misdeeds done by non-political actors cannot be extended to the political executive".

The CBI is probing the role of Chief Executive Officer of LIFE Mission over alleged Foreign Contribution (Regulation) Act violations with respect to the funds received from a foreign sponsor for implementation of the housing project at Wadakkancherry in Thrissur district. 

The case pertains to the spending of the foreign fund against the purpose for which it was aimed for. Congress MLA Anil Akkara had filed a complaint to the CBI alleging that various middlemen, including state representatives and government officials, received Rs 4.5 crores as commission.

In its application, the CBI stated that statements of the witnesses and the documents collected prima facie pointed to the role of senior state government functionaries in the conspiracy to receive foreign contribution and allegedly taking kickbacks through gold smuggling case key accused Swapna Suresh.

Meanwhile, Life Mission's counsel KV Vishwanathan had contended that the project and contributions received were outside the purview of the FCRA since contracts were between Red Crescent and building contractors.