Mantri convicted for Fera violation

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The economic offences court on Wednesday sentenced secondary education minister Kolusu Parthasaradhi to a suspended two-month jail term and fined him Rs 5.25 lakh for FERA violations in a 17-year-old case.

Sources said that Mr Parthasaradhi will be asked to resign from the Cabinet and continue his legal battle. After his conviction, the minister told reporters that the case pertained to some of his business deals before he had entered politics and had nothing to do with his public life.

“I respect the court’s verdict. This case is 17 years old. I will consult my lawyers and take a decision on challenging the court order,” he said, adding that he would consult senior party members and people from his constituency before taking a decision on his resignation. Mr Parthasaradhi furnished the total fine amount of Rs 5.25 lakh and his counsel filed a suspension petition requesting the court to grant time to challenge the prison term. This was subsequently granted.

Parthasaradhi’s days in Cabinet numbered

In court earlier, counsel had argued that Mr Parthasaradhi’s firm had incurred losses and it was the bank which had actually defaulted on payment.

The court, however, found the minister guilty under two counts as charged by the Enforcement Direct-orate. The ED had charged the minister under Section 56 (violation of FERA) and Section 57 (non-payment of penalty by the ED) of the FERA. In both cases, a firm owned by the minister, KPR Plastics Limited, had been listed as accused number 1 while the minister was named accused number 2.

The court imposed a fine of Rs 10, 000 on the firm and sentenced the minister to two months’ simple imprisonment along with a fine of Rs 10, 000 under Section 56. Under Section 57, the court further imposed a fine of Rs 5,000 on the minister and a fine of Rs 5 lakh on the firm. Mr Parthasaradhi furnished the total fine amount of Rs 5.25 lakh and his counsel filed a suspension petition requesting the court to grant time to challenge the prison term. The court admitted the petition and suspended the order on condition that the minister submits a bond of Rs 10, 000 and a surety.

Chief Minister Kiran Kumar Reddy and PCC president Botsa Satyanarayana discussed the court order and spoke to AICC general secretary Ghulam Nabi Azad over phone and explained the background of the case. Reliable sources indicate that Mr Parthasaradhi will be asked to resign as a minister and continue his legal battle.

“How can we keep quiet on the issue? When the CBI filed the chargesheet against Mopidevi Venkataramana and arrested him, he had to resign though he has not been convicted. Mr Parthasaradhi has already been convicted and fined, this is more serious and his continuation in the ministry will be questioned,” said the source.