2G case: Senior lawyer KK Venugopal removed as ED counsel

New Delhi: In a fresh twist to ED's money laundering probe in the 2G case, the probe agency has been asked by the government to remove senior Supreme Court lawyer KK Venugopal as its Special Counsel in the high profile case for taking a contrary stand.

The Finance Ministry, in an order issued late last month, asked the agency to "immediately" replace Venugopal for "submitting a note" in 2014, without consulting the Enforcement Directorate's (ED) or the Department of Revenue, on behalf of Rajeshwar Singh who is the main investigating officer in the 2G money laundering probe.

The Supreme Court, last year, had come down heavily on the government and ordered for permanent absorption of Singh, a Uttar Pradesh State Police Services officer Singh, as a Deputy Director in the ED.

The Finance Ministry had desired that the officer be repatriated to his cadre as his central deputation to the probe agency had come to an end.

Venugopal, awarded the Padma Vibhushan early this year, had then briefed the apex court about various aspects of Singh's case and the Central Administrative Tribunal (CAT)

ordering for his permanent absorption in the ED and subsequently the Delhi High Court refusing to stay this order.

Following these developments, the Supreme Court issued stern directions to the government that Singh be absorbed in the ED permanently without any further delay.

While sources said today that the latest Finmin order has been complied with, it is understood that Venugopal has also written to the ED saying he would not wish to be on the agency's panel "even for a minute" in these circumstances.

The order said Venugopal's action was carried out "without any instruction from either the ED or Department of Revenue" and it was "against the decision taken by the government".

"In view of the conflict of interest of Shri Venugopal, you (Director ED) are requested to replace him as Special Counsel of Directorate of Enforcement. This may please be treated as immediate," the order, dated June 22, said.

Singh, who as a ED Deputy Director issued penalty notices totalling over Rs 17,000 crore against various accused involved in the 2G case till now, had taken a year-long 'study leave' last year owing to lack of clarity over his continuance in the agency and had even written to his superiors to get himself recused from these cases as he felt attempts were being made to derail the probe.

The apex court in May last year had also ordered that Singh should not be taken off from the ongoing probe in 2G cases and directed that he will continue with the spectrum allocation investigations till completion of the trial.

Singh recently issued an over Rs 700 crore attachment order against the Maran brothers (Dayanidhi and Kalanithi Maran) as part of ED's money laundering probe in the Aircel-Maxis deal in connection with the 2G scam case.